President Donald Trump tweeted Monday that a new trade deal with Mexico was ‘looking good’ – and planned to make an immediate announcement from the Oval Office.
‘A big deal looking good with Mexico!’ Trump said without further explanation.
The White House said shortly after that Trump would be making an 11 am statement. It did not specify that a deal with Mexico had been inked yet said trade would be the topic.
Parties to the North American Free Trade Agreement have been negotiating for months to re-do the Clinton-era trade document pact.
Earlier this year, the president imposed tariffs on steel and aluminum, which angered allies and raised pressure for a new deal, as talks continued with Canada.
President Donald Trump tweeted Monday that a new trade deal with Mexico was ‘looking good’ – amid signs of an immediate announcement
The United States and Mexico were said to have reached partial agreement, with President Trump announcing Saturday that a ‘big’ deal could be going down soon.
‘Our relationship with Mexico is getting closer by the hour,’ he said. ‘Some really good people within both the new and old government, and all working closely together….A big Trade Agreement with Mexico could be happening soon!’
The Dow Jones Industrial average jumped 200 points on Monday in advance of Trump’s announcement.
The apparent agreement included a provision requiring a greater share of auto manufacturing be done in high-wage factories – meant to insulate U.S. firms from cheaper Mexican labor, the Washington Post reported.
Pressure was on negotiators to finish a deal before Mexico’s new president, Andrés Manuel López Obrador, is sworn in December 1.
House Majority Leader Kevin McCarthy, who is close to Trump, said Sunday that the expectation is that Canada will be in a hustle to move, too.
‘I believe we’re very close. And also, remember, we make policy in the world of politics. Remember what politics were going on. Mexico was having a presidential election. So it’s very hard for them to make an agreement at the time,’ he told ‘Sunday Morning Futures’ on Fox News.
‘That election is over, but the new president is not sworn in. First thing this administration did was go down there,’ he said. ‘It only makes us stronger, and you’re going into a new election next year in Canada, it’s beneficial to them to have this all agreed upon this year.’
Obrador issued optimistic statements about Trump following his election in Mexico, indicating the potential for a thaw between the two nations, after angry clashes over immigration issues.
Trump has also spoken on the phone about a deal to current Mexican President Enrique Pena Nieto.
Trump campaigned on ripping-up NAFTA, even as talks progressed, his administration clashed with both of its North American Neighbors.
Negotiators appeared to lock down two provisions in recent days.
One related to the percentage of a car that that must be made in North America to get duty-free treatment. This would jump to 75 per cent from the current 62.5 per cent. Another would set a percentage of vehicles that must be manufactured in high-wage factories.
Mexican Economy Minister Ildefonso Guajardo said Monday that a ‘very important’ issue had yet to be decided when asked by reporters if Mexico and the United States had reached agreement. He said an announcement, however, ‘probably on the agenda,’ further suggesting that a deal was imminent.