These states would get hurt most in a Trump trade war

Automakers and parts manufacturers on both sides of the Canada-U.S. border are meeting state and provincial governments to co-ordinate a response to President Donald Trump as he pushes far-reaching changes to a trade deal that's crucial to the industry, the head of Canada's biggest autoparts maker said.

President Trump has promised to reverse the agreement and bringing back the manufacturing job to the U.S.as he stated many times during campaign.

Given that, Schwarzman said, being in a re-negotiated NAFTA with the USA would be "a good place to be", implying Canada could be exempted from such a tax.

"That's what we've got to worry about - is if we're collateral damage", MacNaughton said.

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An adviser for President Trump told a Canadian audience on Monday that the White House agrees, ideologically, with officials pushing for the construction of the Keystone XL pipeline.

Trump also announced he had scheduled meetings with Mexican President Enrique Peña Nieto and Canadian Prime Minister Justin Trudeau to begin the process of reviewing the trade deal. Canada and Mexico are the two largest destinations for U.S. goods and services, accounting for more than one-third of total U.S. exports, adding $80 billion to the U.S. economy and supporting more than 3 million American jobs, according to data from the Office of the U.S. Trade Representative. Trump was expected to meet with Nieto Jan. 31.

Trump praised the Mexican leader, saying: "The president has been really very wonderful and I think we are going to have a very good result for Mexico, for the United States, for everybody involved". Our message is that we know from our perspective it's extremely important to be engaged with the United States, to be talking together about how we can improve our situation.

Such a measure could affect Mexico's exports to the United States, its top trading partner. Trump's plan is reportedly meant to bolster USA manufacturing by spurring US companies to make their goods domestically rather than importing them. I think we should be vigilant.

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NAFTA and other trade deals became lightning rods for American voter anger in the industrial heartland states that swept Trump to victory in the November 8 election.

"They haven't said anything specific about any real problems that they have with us", said David MacNaughton, Canada's ambassador to Washington and a key player on the NAFTA file.

Experts, however, feel negotiating a better deal for the US might take several years, also saying NAFTA's zero-tariff rate would be extremely hard to alter.

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Obama, echoing his Tuesday night farewell address in Chicago, encouraged people to stay involved and be "guardians of our democracy".


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