Justin Trudeau says Canadians are tough negotiators

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After a meeting on Monday between US President Donald Trump and Japanese Prime Minister Shinzo Abe, the two countries agreed to a framework on Tuesday to expand trade, which would include negotiations on tariffs, The Japan Times reported.

Speaking at a news conference in New York, Trump also said he was planning to effectively terminate the North American Free Trade Agreement and impose steep tariffs on all automotive imports from Canada to the United States.

Contrary to Trump's claims, the Prime Minister's Office says that there was never a meeting requested with Trudeau to begin with. "That's the big one".

"I'm not going to use the name 'NAFTA, '" he said.

The U.S. has suggested it will forge a new NAFTA deal with just Mexico if it fails to reach an accord with its northern neighbor.

The Canadian leader added existing United States tariffs on Canadian steel and aluminium, which were implemented in late May, would have to be scrapped before Canada felt confident in signing a new NAFTA agreement. "Very bad for us", said Trump, who refused to use the name NAFTA for a new deal.

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. "We're going to tax the cars that come in", he said.

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Trump has demanded major changes to NAFTA, which he has said caused USA manufacturing jobs to move to low-wage Mexico.

The president added new pressure to trade talks Wednesday when he took aim at Trudeau and the Canadians, saying he won't make the deal they're seeking, that he doesn't like Canada's representative and that he might apply auto tariffs to the northern nation. "That doesn't make any sense at all, so hopefully we'll end up with something with Canada".

"The Americans are finding that the negotiations are tough because Canadians are tough negotiators, as we should be", the prime minister told reporters in Ottawa.

Ninety-eight per cent of CETA came into effect last September on a provisional basis, sweeping away tariffs on a large number of goods and widening access to Canadian beef in Europe and European Union cheese and wine in Canada.

The Americans have imposed a deadline of September 30 to reach a deal.

At 4.09pm local time (9.09pm BST), the Canadian dollar was trading 0.5 percent lower against the United States dollar at 1.3018, or 76.82 USA cents. It's been great for Mexico.

Malmstrom said Trump's comments show that "it is increasingly hard dealing with the Americans". "But it will probably or possibly be just USM", he said suggesting it will likely only include the USA and Mexico.

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