"Discussions appear to have taken on a surprising urgency of late, with the USA focused on ironing out its differences with Mexico, while apparently freezing Canada out of the talks", ING analysts note.
Trump slapped Canada and other allies with steel and aluminum duties, which led to retaliatory levies from Ottawa. Will tax cars if we can't make a deal! "Autoworkers and farmers must be taken care of or there will be no deal", President Trump tweeted, adding that incoming Mexican President Andres Manuel Lopez Obrador "has been an absolute gentleman".
US President Donald Trump is once again threatening to impose tariffs on vehicles coming from Canada.
Trump has said recently he might prefer to end the decades-old Nafta pact in favour of inking separate, bilateral agreements with the US's southern and northern neighbours.
Canadian officials are saying they have been involved in the negotiations, arguing there have been lots of bilateral talks between NAFTA partners during the yearlong renegotiation process. "Will tax cars if we can't make a deal!".
The tweet comes amid ongoing tepidness about when NAFTA renegotiations will resume.
But he reiterated his threat that tariffs on auto imports could be in store for the USA neighbor to the north: "Canada must wait". Canada is expected to re-join the negotiations for that, while reports that Nafta would be replaced with bilateral agreements between the three countries, a move that Mexico and Canada have previously resisted, seem premature. Asked about progress on autos rules of origin, he said: "Nothing is close until everything is close, but there are items in every element that is being discussed".
Industry officials also said the US team had barely moved from its demands last May of a 75-percent overall regional content threshold with 40-45 percent content from high-wage zones - effectively the United States and Canada - with the only substantial change a slightly longer phase-in time.
The U.S., for instance, uses trade barriers to protect sugar, peanuts and tobacco. "Because you're talking about a very different two countries", President Trump said on 1 June. Trump has made this threat on several occasions and those in the industry have expressed concern about the impact that could have throughout North America.