After what seems like forever, Canada and the US are finally reaching the end of their super intense trade war. The war all began shortly after Donald Trump imposed tariffs on Canada and spoke out against our Prime Minister. Canada responded with retaliatory tariffs, and a quiet battle has been going on ever since.
But, now there is finally a light at the end of the tunnel. Just last night, the negotiating teams from Canada, Mexico and the US, including Canada's minister of Foreign Affairs, Chyrstia Freeland, reached a new agreement to replace NAFTA and the new trade deal marks the beginning of the end.
When Trump first announced the tariffs on Canadian steel and aluminum, he said it was because we refused to sign his new NAFTA agreement. Although many believe that it was because of comments Justin Trudeau made right after the G7 summit, condemning some of Trump's actions.
But, with the new NAFTA deal - or the USMCA, as it's now known - Trump has reportedly said that Prime Minister Trudeau is a good guy and that plans are underway to remove the tariffs against Canada.
Trump acknowledges that he had "very strong tensions" with Prime Minister Trudeau. However he says "it's all worked out" and calls Trudeau a "good man."— CP24 (@CP24) 1 October 2018
Trump says steel and aluminum tariffs will remain in place for the time being, but he says "we are working on that now."— CP24 (@CP24) 1 October 2018
This is a major glimmer of hope for anyone who likes to buy US products or anyone who was avoiding buying certain items of visiting the US. When the tariffs were first imposed and Trump first made comments against Trudeau, many Canadians began to boycott the president and the country. But, now that the two seem to be partners again, all of that can stop.
That being said, the tariffs are still in place for the near future. President Trump has announced that they are talking about another deal with Canada that would see the tariffs lifted, as well as protection for the US auto industry. While they haven't said when exactly it's happening, the deal is definitely coming soon.
The end of the trade war isn't the only good thing to come out of the new NAFTA agreement. Canada's loonie is also way up from where it was recently, with the Mexican peso also trading at a higher value too because of the new deal.