Larry Kudlow, the top economic adviser to the White House, has recently joined President Donald Trump’s efforts to pressure Canada into a new trade deal.
Kudlow has threatened to impose automobile tariffs on Canada if the country does not agree to a new trade agreement. He advised the U.S.’ northern neighbor to look into the White House’s recent trade deal with Mexico. The deal seemed to be purposefully designed to highlight Canada’s exclusion. President Trump even stated that the deal should be called “The United States Mexico Trade Agreement.”
During an interview with CNBC, Kudlow stated:
“We hope Canada is watching carefully at how successful negotiations can go. We really would like a deal with them. If we can’t get a good strong fair deal with Canada … the U.S. might have to resort to auto tariffs. Hopefully Canada will cooperate and move the ball in our direction.”
The Trump administration has been attempting to renegotiate the NAFTA agreement for months. Talks regarding the new trade deal are set to begin soon, and they will be passionately observed by the entire international community.
Excluding Canada in such a bold, manner is dangerous for the Trump administration. The administration could end up alienating the northern nation completely, which could have substantial consequences on the North American continent’s economy. Some U.S. officials have already highlighted this dangerous possibility, mentioning that the deal must be trilateral.
Featured Image via Flickr/Gage Skidmore