US, Mexico Agree to New Terms on Auto Trade with NAFTA Overhaul

The United States and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-nation pact.
Aug. 28, 2018

August 28, 2018—The United States and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-nation pact, reported Reuters.

Auto stocks soared and the S&P 500 and the Nasdaq rallied to record highs on the expectation that Canada would sign onto the deal and ease the economic uncertainty caused by U.S. President Donald Trump’s repeated threats to ditch the 1994 accord, according to the report.

Details of gains and concessions in the deal were only starting to emerge on Monday. Trump threatened he still could put tariffs on Canadian-made cars if Canada did not join its neighbors and warned he expected concessions on Canada’s dairy protections.

According to Reuters, negotiations among the three partners, whose mutual trade totals more than $1 trillion annually, have dragged on for more than a year, putting pressure on the Mexican peso and the Canadian dollar. Both currencies gained against the U.S. dollar after Monday's announcement.

Subscribe to our Newsletters

Latest in Latest News

Enterprise/Tasco Auto Color
Enterprise and Tasco Logo
Enterprise and Tasco Auto Color continue to support the Collision Industry Foundation program at the second highest tier, Urgent Care, for donors that contribute $5,000-$10,000...
June 19, 2025
Adobe Stock 200930201
adobestock_200930201
The insurance company said it has control of its systems and hasn’t detected any evidence of ransomware or ongoing threat actor activity since the June 7 attack.
June 19, 2025
MSCRA
MSCRA Logo
The Mountain States Collision Repair Association’s first in-person event features four industry experts and networking opportunities at Downhill Brewing in Parker, Colorado.
June 19, 2025