President Donald Trump has renewed his interest in the reworking and possible termination of NAFTA after tweeting yesterday that Canada and Mexico are “being very difficult.” The North American Free Trade Agreement, which President Trump has emphasized as being the cause of Thousands of lost American factory jobs.
We are in the NAFTA (worst trade deal ever made) renegotiation process with Mexico & Canada.Both being very difficult,may have to terminate?
— Donald J. Trump (@realDonaldTrump) August 27, 2017
Earlier this Spring the Trump Administration imposed a 20 percent Tariff on Canadian Lumber imports, this goes against to the 2006 Softwood Lumber Agreement between the US and Canada. The tariff was placed to make the American timber prices more attractive to domestic buyers.
Canada has declared that they intend to seek legal action before the World Trade Organization if terms on the Tariff are not renegotiated. We spoke with Ken Marson, of Marson and Marson Lumber in Leavenworth earlier this year about the Lumber Tariff, and where this timber crisis came from.
Lumber Futures in Chicago has shown 14 percent growth in domestic sales since the tariffs were put in place, but the US has also increased Timber imports from other nations such as Russia. Also there is an expected increase in both Canadian and domestic timber sales following the destruction caused by Hurricane Harvey in Texas.