The Financial Post reports in its Saturday edition that a Republican lawmaker urged President Donald Trump to renegotiate the Canada-United States-Mexico free-trade agreement (CUSMA) to ease new automobile tariffs. A Bloomberg dispatch to the Post reports that House Financial Services Committee Chairman French Hill stated that House Republicans and businesses want a strategic tariff plan to ensure economic certainty.
"Let's renegotiate CUSMA," Mr. Hill said of the North American trade agreement signed in 2018. Mr. Hill highlighted that some 30 per cent of the goods made in his home state of Arkansas are shipped to Mexico or Canada.
The best way to tackle Chinese dumping of auto parts is to change the requirements for American content laid out in the CUSMA agreement -- which Mr. Trump signed in his first term -- Mr. Hill argued. The congressman said that he is hearing from Walmart that the trade levies will raise prices for consumers. He also expressed concern about the uncertainty about the President's tariffs. Mr. Trump is planning a fresh set of duties to be announced Wednesday. "I don t know what the strategy is," Mr. Hill said. As for Walmart, they "can live with certain things if they know what the plan is."
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