The Globe and Mail reports in its Friday edition that Jamieson Greer, President Donald Trump's nominee for top U.S. trade negotiator, prioritized revamping the United States-Mexico-Canada Agreement as the new administration adopts a protectionist trade agenda. The Globe's Mark Rendell writes that Mr. Greer plans to examine whether to tighten USMCA rules of origin for automobile production and would push for better access for American farmers to Canadian and Mexican markets. This could reignite disputes over auto supply chains and Canada's dairy and poultry industries that were settled during the USMCA renegotiation in Mr. Trump's first term. Despite the temporary tariff pause, Mr. Greer suggested it will remain a central tool in his country's economic tool kit over the next four years. Mr. Trump has asked his administration to develop a range of protectionist measures by April 1, including a possible universal tariff. The Globe says mainstream economists generally dismiss the effectiveness of tariffs in shrinking a country's trade deficit, and many have warned about the inflationary consequences. The Globe says a trade war with Mexico and Canada would cost the average U.S. household more than $1,200 (U.S.) a year.
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