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Peso, Loonie Drop After NAFTA Renegotiation Executive Order Headlines

Confirming his campaign rhetoric and inaugural address tone, President Donald Trump is expected to sign an executive order as early as Monday to renegotiate the North American Free Trade Agreement (NAFTA) with Canada and Mexico, according to NBC News' Kristen Welker.

President Donald Trump is expected to sign an executive order as early as Monday stating his intention to renegotiate the free trade agreement between the United States, Canada and Mexico, a White House official told NBC News.

 

Eliminating the North American Free Trade Agreement (NAFTA), which was crafted by former President Bill Clinton and enacted in 1994, was a frequent Trump campaign promise.

 

The deal was intended to eliminate most trade tariffs between the three nations, increase investment and tighten protection and enforcement of intellectual property.

The reaction in the Mexican Peso and Canadian Dollar is clear...

This should hardly be surprise...

I will renegotiate NAFTA. If I can’t make a great deal, we’re going to tear it up. We’re going to get this economy running again.

— Donald J. Trump (@realDonaldTrump)

Canada's ambassador to the United States said it was clear the Trump team were concerned above all about trade deficits with Mexico and China.

"I don't think Canada is the focus at all," David MacNaughton told reporters in Calgary, Alberta, ahead of a two-day government retreat focused on how to handle the new Trump administration.

Additionally, as CNN's Jake Tapper tweeted, Trump is expected to abandon TPP...

 

Sr WH official: POTUS's first executive action on Monday will be to withdraw from the Trans-Pacific Partnership, per

— Jake Tapper (@jaketapper)

All of which confirms the new White House's statement:

"This strategy starts by withdrawing from the Trans-Pacific Partnership and making certain that any new trade deals are in the interests of American workers,"

 

"President Trump is committed to renegotiating NAFTA. If our partners refuse a renegotiation that gives American workers a fair deal, then the president will give notice of the United States' intent to withdraw from NAFTA."