Dollar pressured by Trump comments on government shutdown, NAFTA
- Author: Wendy Palmer Aug 25, 2017,
Aug 25, 2017, 1:26
"Personally, I don't think we can make a deal".
"The pullback is from pretty strong words out of the president ... comments on NAFTA, which brings up a question of a global trade war, is weighing", quoted Peter Cardillo, chief market economist at First Standard Financial.
Trump has long made public his belief that NAFTA is harmful for American workers and that he would not hesitate to pull the plug on the deal if significant changes were not implemented. As Max Fisher reported in June, "Canadian officials have fanned out across the United States, meeting with mayors, governors, members of Congress and business leaders on matters from trade to the environment".
The Canada-U.S. two-year bond spread stood at -5.3 basis points, while the 10-year spread stood at -28.8 basis points.
A drawn-out process does not concern the farm bureau, which was not necessarily seeking renegotiation of NAFTA in the first place, Nigh said.
Credit ratings agency Fitch Ratings said a failure to raise the ceiling in a timely manner would prompt it to review its rating on US sovereign debt, "with potentially negative implications".
"Personally, I don't think we can make a deal because we have been so badly taken advantage of", he said.
In terms of trade with Mexico, the Yukon exported $2.3 million worth of goods, mostly in drilling and boring tools, and imported $35 million, primarily truck machine parts and fire extinguishers.
"Abruptly ending NAFTA could create a string of unintended consequences that need to be carefully considered", said Ann Wilson, an executive at the Motor & Equipment Manufacturers Association, which represents auto suppliers.
Even if the upheaval of Trump's threats to scrap NAFTA amounts to nothing but a slightly tweaked agreement, Mexicans have been made well aware of the risks of relying too heavily on the United States during this period of uncertainty.
"No surprise: We're in a negotiation now, Mexico will still be at the table with serenity, strength and the national interest in front", Mexico's foreign minister, Luis Videgaray, tweeted Tuesday night. Either that or officials have been privately told that Trump's rhetoric isn't the official position. He called the president "full of threats and bluster", and said Trump missed an important opportunity.
Still, U.S. trade negotiators have indicated they have no intention of tinkering around the margins.
Canada's minister of foreign affairs, Chrystia Freeland, only recently issued a series of general ideals around what Canada would be looking for in the negotiations.
One risk is that negotiations could drag on into next year, when Mexico has a presidential election, and the trade talks would get swept up into a more volatile political environment or a new administration that might be less inclined to deal with Trump. The truth is, the end of NAFTA would hurt all three partner countries. "And especially for a border state like Arizona", Taylor said.