US says Canada not making concessions needed for NAFTA deal

"We're going to tax the cars that come in", Trump said Wednesday during a press conference at the United Nations headquarters in NY.

Canada is signalling that this week's NAFTA deadline could come and go without a deal - with Prime Minister Justin Trudeau citing a "range of paths" forward while his US envoy digs in on two issues.

The President imposed tariffs on steel and aluminum from Canada and Mexico in June, and has threatened to bring in additional duties on imported autos as well.

Speaking at the United Nations General Assembly on Tuesday, Trump touted the success of his trade policy, citing the renegotiated bilateral trade deal with South Korea, as well as a partial rework of NAFTA agreed to with Mexico. Officials in the Prime Minister's Office insisted no such request had been made, given already close contact with the White House.

Mexico and Canada have historically been united in opposition against any changes in trade policy with the US, but Mexico's leadership has been reluctant to stall any further progress.

It is possible that Congress, which strongly prefers an agreement involving Canada, would allow Canada to be added to the U.S. -Mexico text at a later date. "I must be honest with you, we're not getting along at all with their negotiators", Trump said.

At a separate event in New York, Canadian Prime Minister Justin Trudeau addressed trade tensions alongside his foreign minister, Chrystia Freeland, who is leading Nafta talks.

Trump should submit the final version of the NAFTA deal by September 30 despite not meeting compromise with Canada. He has invoked Section 232, a previously obscure provision in US trade law that allows the president to levy tariffs for "national-security" reasons.

Trump has said "a few times" that a new deal would mitigate the tariff issue, the prime minister said.

Flavio Volpe, the head of Canada's auto-parts industry lobby, said Mr. Lighthizer was moving the goalposts and that Canada should hold the United States to its original promise that a NAFTA deal would mean no tariffs. "I think our view is now we'll turn to that as a next stage".

"We have always been advocates for balanced and free trade", Hinrichs said on Monday. "It was an interaction like so many are in the United Nations - quick but cordial". "We don't like their representative very much".

Canadian Prime Minister Justin Trudeau has indicated he may be willing to jump on a deal with the US and Mexico, but time is running out.

He added: "We're sort of running out of time".

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