North American trade deal at risk as U.S., Canada exchange barbs

"Companies have spent decades investing in the North American supply chains that help produce more affordable cars, supply crude oil to Midwest refineries and equip West Coast homes with natural gas."

"Washington wants to prevent China from using Mexico or Canada as a back door into the North American market - a particular flashpoint for Canada, which recently struck a limited tariff truce with Beijing."

"U.S. officials have met with Mexico's top economic officials, leaving Canada to the side as tensions flare - raising the prospect of separate trade deals with America's neighbors to the north and south."

Trade experts warn that the trilateral agreement may collapse, which would significantly affect North American supply chains. Companies have invested heavily in these networks for affordable cars, crude oil supply, and natural gas. The USMCA has provided some protection against trade war damages. However, tensions are rising, particularly between the U.S. and Canada, as Washington seeks to limit China's influence through Mexico and Canada. Negotiations are currently bilateral, with Canada sidelined, raising concerns about separate trade deals.

Read at Axios