In addition to the automotive sector, the wider US domestic economy could be affected if Trump takes a hardline position in his Section 232 investigations into steel and aluminium, and in talks to reform the North American Free Trade Agreement (Nafta), industry executives said at American Metal Market’s 23rd Mexican Steel Forum on January 16-18 in Cancun, Mexico.
“Does the Trump team simply want the renegotiation to fail, thus giving the president an excuse to withdraw from Nafta? A lot of people think that’s what’s going to happen,” according to Daniel Pearson, principal at Pearson International Trade Services LLC.
Such concerns come ahead of a sixth round of Nafta talks scheduled to be held next week in Montreal, Canada.
Trump’s Nafta ‘poison pills’
In Nafta talks, the Trump administration is seeking to increase North American material content in vehicles produced within the region to 85% from the current 62.5%, with the US portion of...