U.S. President Donald Trump is continuing to threaten changes to long-standing trade agreements with Canada.
Just a day after announcing tariffs ranging up to 24 per cent on softwood lumber, reports now say the White House is mulling a potential withdrawal from the North American Free Trade Agreement.
CKNW Business Analyst Robert Levy suspects while Trump is playing hardball with Canada, the reality is the U.S. and Canada are still strong trade partners.
“When we think about how we’re dealing with a wild card such as Trump and his administration, it’s important to note that you don’t think they’re going to be in a scenario where they would cut off their nose to spite their face. There’s still positives to still work into this that could benefit Canadians and firms that do business with the U.S.”
Levy also gave a timeline on what President Trump could do should he sign an executive order to leave.
“He can give Congress six months notification that he wants to withdraw from NAFTA, but the issue here as we known and have seen in Trump’s first one hundred days is we’ve got a wild card president that doesn’t seem to do things the traditional way in Washington and it creates a lot of uncertainty.”
Trump has continuously criticized the agreement, with threats of withdrawal dating all the way back to the beginning of his presidential campaign.