Donald Trump hailed his new trade deal with Mexico and Canada on Monday as a ‘historic win’ for American manufacturers and auto workers that will turn America ‘into a manufacturing powerhouse.’

The deal came about after Trump slapped steep steel and aluminum tariffs on foreign nations and threatened crippling penalties on auto parts coming out of Canada.

‘By the way, without tariffs we wouldn’t have gotten a deal. That’s for those babies out there,’ he said at a Rose Garden news conference, where he spoke about how America is being ‘respected’ again on every front thanks to his leadership.

Trump also claimed that jobs and cash would be flooding into the United States as a result of the agreement that he boosted as a boon to American farmers, especially when it comes to ice cream and poultry.

And he hailed soaring markets, which had seen a huge boost when they opened at 9.30 a.m. Monday after the deal was struck on the cusp of midnight, with the Dow Jones up 200 points as soon as the opening bell rang.

The deal was sealed at the last minute amid squabbles over the tariffs between Trump and Canadian Prime Minister Justin Trudeau, whom he denied a meeting last week.  Trump said a news conference that his counterpart could ‘forget it’ as they spent several overlapping days with not talks in New York at the United Nations.

‘There was a lot of tension, I have to say, between I think he and I,’ Trump admitted in his Monday morning remarks. ‘You know when it ended? I think 12 last night.’

Donald Trump said Monday in Rose Garden remarks that if not for his tariffs, the United States wouldn't have been able to reach a trade deal with Mexico and Canada

USMCA’S KEY PROVISIONS – AND HOW IT DIFFERS FROM NAFTA

Autos

  • 75 per cent of a vehicle’s parts have to be made in North America for it to qualify for free trade access – up from 62.5 per cent
  • 70 per cent of a vehicle’s  steel or aluminum has to be from North America to qualify for free access
  • By 2023 40 cent of a vehicle’s parts have to be made by by autoworkers where autoworkers earn a minimum of $16 an hour to qualify for tariff exemption. The figure is not linked to inflation
  • If Trump imposes tariffs on Canada and Mexico, the two countries get increased annual quota of 2.6 million vehicles they can import tariff free to the U.S. 
  • Passenger vehicles are exempt from Trump’s planned tariffs  

Dairy

  • American farmers get access to 3.5 per cent of the Canadian dairy market, up from 3 per cent
  • Canada agrees to drop complex quota and pricing system which kept out many processed U.S. dairy products including cheese and ice cream
  • Canada will get more access to the U.S. to sell its peanuts and dairy products  

Time limit

  • The USMCA will have a 16-year sunset clause with meetings every six years on whether to renew the pact. Trump had wanted a five-year sunset clause 

Workers rights

  • Mexico agrees to workers being allowed to bargain collectively – the most basic level of union recognition

New technology

  • Duties cannot be imposed on music, books, software or video games when they are distributed online from one country to another of the three countries
  • Criminal penalties for pirating movies are introduced 
  • Now biotechnology and financial services can be patented, which should help U.S. firms in those sectors expand in Canada and Mexico

Agriculture and retail

  • Restrictions on selling U.S. cheeses in Mexico and vice versa are lifted which had stopped American mozzarella, blue cheese and even Monterey Jack being kept of Mexican shelves
  • American wines can be sold in British Columbia’s state-owned wine shops without restrictions 

Pharmaceutical

  • Canada extends patent protection for some categories of prescription drugs from eight to 10 years, a boost to U.S. manufacturers

Copyright protection

  • Canada increases the length of time an author’s book, or music, or photograph, is protected from 50 to 75 years, bringing it into line with the U.S. 

Duty free

  • Now Canadians can take $40 Canadian in goods across the border duty-free,  up from $20 Canadian – and e-commerce goes up to $150 in a boost for U.S. online retailers

Trump gave the Canadian prime minister his ‘highest regards’ in the news conference portion of his remarks.

‘He’s a professional. I’m a professional,’ Trump said of the effect that their soured relationship had a deal. ‘We have a great relationship, but he’s going to work as a partner.’

Giving his counterpart a boost at another point, Trump referenced to Trudeau by his first name and said: ‘Justin loves his people. He’s fighting hard for his people.’

Trump called the news conference on Monday morning to boast about the 11th-hour reformulation of the Clinton-era NAFTA trade pact as the United States Mexico Canada Agreement.

The old deal that’s he’s tossing out was one of the ‘worst’ trade deals he’d ever seen, Trump complained.  ‘Now, it’s a fair deal. It’s not NAFTA redone.’

Trump said he plans to sign the pact by the end of November and then pass it off for approval to Congress, where he said it could face a rocky path to approval, because Democratic lawmakers with 2020 on their minds will want to block it.

‘Late last night, our deadline, we reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico. The new name will be The United States Mexico Canada Agreement, or USMCA,’ the president wrote in a pair of morning tweets.

‘It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduces Trade Barriers to the U.S. and will bring all three Great Nations together in competition with the rest of the world. The USMCA is a historic transaction!’

At his news conference Trump said that he was axing the old deal in its entirety – even its name. ‘USMCA, sort of just works,’ he said of his preferred acronym.

‘That will be the name that maybe 9 percent of the time we’ll be hearing, has a good ring to it,’ he said.

Canada signed onto a bilateral agreement on Sunday evening that Trump had said he’d plow ahead with alongside Mexico regardless of whether the northern neighbor that currently participates in NAFTA signed on.

‘It’s a good day for Canada,’ Trudeau told reporters as the bartering came to a formal close.

Trudeau at a news conference just after Trump’s said that coming to an agreement was ‘no easy feat’ and that certain concessions had to be made to the U.S. The Canadian leader promised to address ‘anxiety’ that his country’s dairy farmers have.

American dairy farmers will have access to 3.5 percent of the Canadian market that accounts for $16 billion annually.

Trudeau said that ‘nothing is guaranteed yet’ and ‘there are still some uncertainties’ about the deal’s effects.

‘That being said, today’s announcement is a major stride forward. This is the path we must follow to usher in a new era of economic prosperity and stability,’ he stated.

President Donald Trump and Canadian Prime Minister Justin Trudeau reportedly reached a deal on a revised North America Free Trade Agreement (NAFTA) late Sunday evening, according to officials briefed on the negotiations. The leaders are pictured together in June

Trump tweeted his congratulations to Trudeau and his Mexican counterpart, calling the new ‘USMCA’ pact a historic transaction

U.S. and Canada reach a trade deal to replace NAFTA
Canadian Foreign Affairs Minister Chrystia Freeland said at the news conference in Ottawa that she takes issue with U.S. steel and aluminum tariffs, which Trump said Monday are outside of the new deal and will not be removed at this time.

‘That’s something we continue to discuss with the United States,’ she said. ‘We have a little bit of wind in our sails and we are going to very much continue to work on this issue, but it is separate from the NAFTA talks.’

Last week, a deal seemed out of sight, as Trump snubbed Trudeau and a Sept. 30 deadline to submit a deal to Congress loomed.

U.S. trade law requires public comment period of 60 days before Congress can formally take up a new pact. The deal had to become public by the stroke of midnight in order for Mexico’s exiting president to sign it before he leaves office.

Mexican President Enrique Peña Nieto will be replaced on Dec. 1 by Andrés Manuel López Obrador.

López Obrador supports the agreement, but waiting for his signature could open up the deal to additional changes that would drag out the negotiations that have already stretched more than a year.

Congress could also slow-walk the agreement, and Trump predicted on Monday that that lawmakers would if only to stick it to him before they prepare their own bids for the Oval Office.

‘Frankly, they’ll have 2020 in mind. They have 2020 in mind. They want to do as well as they can, so even trying to reject great deals,’ he said. ‘I can’t tell you whether or not they will obstruct whether or they will resist.’

U.S. and Canada are making ‘lots of progress’ in regards to NAFTA

Specific details of the trade deal were still hazy on Monday afternoon.

A joint statement from U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland said the deal ‘will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.’

The statement continued: ‘We look forward to further deepening our close economic ties when this new agreement enters into force.’

A senior administration official told reporters late Sunday night on a call that the the deal new places ‘stronger rules of origin on automobiles’ and includes ‘ambitious new market access provisions for our farmers and ranchers.’

Canada’s concession on dairy are a ‘big win’ for America’s farmers, the U.S. official said.

‘We’ve also included the review and termination provision that we previously announced in our deal with Mexico, which will ensure that we never end up in this position again, with an agreement that is stale and outdated and unbalanced in a way that is not beneficial to the United States.’

Canadian Minister of Foreign Affairs Chrystia Freeland and Gerald Butts, senior political advisor to Trudeau, are pictured walking in the loading dock of the Office of the Prime Minister and Privy Council in Ottawa on Sunday amid reports of a last-minute Cabinet meeting

The Trump administration is aiming to have the agreement in place by the time that Pena Nieto leaves office at the beginning of December.

Trump acknowledged at his news conference that he and the outgoing Mexican president had had ‘disagreements’ in the time they were both in office but they had developed ‘sort of a bond’ over trade and he now likes his counterpart a lot.

He said he believes the feeling is mutual.

Trump said that the trilateral deal is a model for other countries seeking to do deals with the U.S. like China but also the E.U.

‘China wants to talk, and we want to talk to them, and we want them to help us with North Korea,’ Trump declared. ‘The EU has been very tough on the United States.’

Trump said that the EU ‘didn’t want to talk’ until he threatened auto tariffs. Then, Jean-Claude Juncker called and said ‘we want to make a deal’ and they started working on a pact.