US and Mexico agree trade deal to replace NAFTA as talks with Canada set to begin immediately
The United States and Mexico have reached an agreement on a new trade deal, as Wall Street rallies to all-time highs.
President Trump has announced a new United States-Mexico Trade Agreement and said that discussions with Canada would begin immediately.
Shares of automakers, set to gain from the deal, soared following the announcement with Ford up 2.7 per cent, General Motors gaining 4.2 per cent and Fiat Chrysler jumping 4.1 per cent.
US stocks have also risen to all-time highs.
The Dow Jones Industrial Average was up 265 points for the day following the announcement and the S&P 500 Index gained 0.7 per cent to hit a record high.
The NASDAQ Composite also rose to over 8,000 for the first time in early trading and has continued to rise.
Canada had sat out the latest round of negotiations as the US and Mexico attempted to settle their differences.
Mexican President Enrique Pena Nieto told Trump in a phone call on Monday that his country wants to incorporate Canada into the deal.
Trump said he would call Canadian Prime Minister Justin Trudeau shortly and that if Canada wants to negotiate fairly the United States would do so.
He added that if an agreement could not be reached the US would impose tariffs on Canada cars.