In one of the most striking reversals for President Trump to date, as reported earlier, just hours after the White House said the president is contemplating terminating NAFTA before his 100th day, sending the loonie and peso crashing, Trump reversed his position and as Bloomberg put it, made a “huge U-turn” in his NAFTA stance, allowing the trade agreement to continue after he spoke with the presidents of Mexico and Canada about ways to renegotiate the accord.
“Both conversations were pleasant and productive. President Trump agreed not to terminate Nafta at this time and the leaders agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation of the Nafta deal to the benefit of all three countries,” the White House said in a statement late Wednesday. Needless to say, currency traders were turmoiling, first watching Mexico’s peso and Canada’s dollar plunged then surge after the White House’s Wednesday night announcement.
As Bloomberg added, Trump’s top advisers had been embroiled in a debate over how aggressively to proceed on reshaping U.S. participation in Nafta, with hard-liners favoring a threatened withdrawal as soon as this week and others advocating for a more measured approach to reopening negotiations with Canada and Mexico.
This morning, it appears that Trump has gotten an earful on his latest stark reversal, and as a result the president took to twitter, tweetsplaining the motives behind his move. This is what he said:
“I received calls from the President of Mexico and the Prime Minister of Canada asking to renegotiate NAFTA rather than terminate. I agreed” Trump tweeted, and in a following tweet added “subject to the fact that if we do not reach a fair deal for all, we will then terminate NAFTA.” He concluded: “Relationships are good-deal very possible!”
As a reminder, during his campaign, the president repeatedly bashed the trade agreement as a “disaster for our country.”
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