Peso Plunges As White House Plans NAFTA Withdrawal Executive Order
The Mexican Peso is tumbling (and Loonie extending yesterday’s timber-tariff-driven losses), as Politico reports, the Trump administration is considering an executive order on withdrawing the U.S. from NAFTA, according to two White House officials.
Politico reports that a draft order has been submitted for the final stages of review and could be unveiled late this week or early next week, the officials said. The effort, which still could change in the coming days as more officials weigh in, would indicate the administration’s intent to withdraw from the sweeping pact by triggering the timeline set forth in the deal.
The approach appears designed to extract better terms with Canada and Mexico, and judging bvy the FX market’s reaction, they agree…
Trump in recent weeks has stepped up his rhetoric vowing to terminate the agreement all together.
“NAFTA’s been very, very bad for our country,” he said in a speech last week in Kenosha, Wis.
“It’s been very, very bad for our companies and for our workers, and we’re going to make some very big changes or we are going to get rid of NAFTA once and for all.”
Peter Navarro, the head of Trump’s National Trade Council, drafted the executive order in close cooperation with chief White House strategist Steve Bannon. The executive order was submitted this week to the staff secretary for the final stages of review, according to one of the White House officials.
All this rhetoric, however, is sending the dollar surging – something Trump expressed just a few days ago was not great…