President Trump on Friday threatened tariffs on Canadian-made cars if US officials can't strike a deal with the country on overhauling the North American Free Trade Agreement. "Nobody will threaten us that our borders will be closed or militarised", Lopez Obrador, who takes office December 1, had said.
The NAFTA is a deal signed by the US, Canada and Mexico, creating a trilateral trade bloc in North America.
The negotiations stalled due to Trump's favour for a sunset clause in U.S. trade agreements, requiring parties to renew them every five years.
But the USA negotiators do not want to apply the same guarantees to new Mexican auto plants, the officials said, as the potential threat of 25 percent tariffs would discourage new automotive investment in Mexico to serve the US market.
"We keep working, we are advancing and progressing with various issues, this morning we covered a good number of them", Guajardo said. He says the country's "Tariffs and Trade Barriers are far too high" and is threatening to "tax cars if we can't make a deal!" But he is threatening Canada with auto tariffs if the United States and Canada can't forge a deal.