>> It's possible we won't be able to make a deal and it's possible that we will.>> President Donald Trump, yet again, threatening to blow up a free trade deal with America's neighbors. As Mexico, Canada and US business groups scramble to save it. I'm Andy Sullivan. As talks over the North American Free Trade Agreement resume on Wednesday, defenders are sounding the alarm that the Trump administration might torpedo the deal by insisting on conditions that are deal breakers for Mexico and Canada.
Trump's been saying for months that he wants to scuttle NAFTA, now he might get what he wants. Not by pulling out, but by sticking by conditions that the other sides see as beyond the pale. Trump saying in a meeting with Canadian Prime Minister Justin Trudeau, that he could strike a new deal that would include America's northern neighbor but not Mexico.
Trudeau on Capitol Hill pointing out that Canada is the United States' biggest trading partner, courting potential allies if Trump tries to kill NAFTA.>> Canadians are aware that the American administration and the President makes decisions that surprise people from time to time. And that is certainly something that we are very much aware of, and very braced for, and conscious of.
But at the same time, Canadians expect us to work in a thoughtful, meaningful way towards getting a good deal.>> The Trump administration calling for tougher rules that would require more automobile parts to be made in the United States. Auto makers warning that could force them to ship more production over seas.
Trump's team also calling for new talks every five years. The US Chamber of Commerce, normally a staunch ally of Republican Presidents, saying, those provisions amount to poison pills, warning of massive job losses if NAFTA falls apart. Trump's been bashing NAFTA for more than two years. It's one of the issues that got him to the White House.
So this latest round of trash talk isn't necessarily surprising, and who knows? It could lead to a new deal with better terms for the United States. But in the meantime, he's badly straining relations with two important allies. And he's spooking US manufacturers and farmers to boot. In the end, that could leave the United States more isolated and less prosperous.