Tag «Dick»

Loonie heads south Magna drops after White House hints it may pull

WASHINGTON — The White House is telling U.S. media that it’s weighing a plan to pull out of NAFTA.The administration has prepared a draft of an executive order to withdraw from the trade accord, Politico reported Wednesday, citing White House officials it didn’t identify.The move is still under internal debate, according to the article. It was published just days after Trump levied a tariff on imports of softwood lumber from Canada, decrying unfair competition. A week ago, the U.S. president called NAFTA a “disaster.”“People are getting more nervous after the U.S. imposed a tariff to Canada,” said Andres Jaime, a foreign-exchange strategist at Barclays Plc in New York.It remains unclear whether he’s seriously considering a pullout, or simply using it as a threat.Nonetheless, Mexico’s peso, the Canadian dollar and shares of companies that rely on cross-border trade plunged on speculation the Trump administration was close to scrapping Nafta.The moves slowed a surge in riskier assets sparked by President Donald Trump’s promise to unveil Wednesday a proposal to overhaul U.S. taxes.Canada’s dollar reversed earlier gains. Magna International Inc., a Canadian parts supplier, erased a gain and traded lower. The Mexican peso dropped the most since January. Shares of Kansas City Southern, which gets half its revenue from Mexico, plunged as much as 4.9 per cent after the report. Mexican auto-parts maker Nemak SAB sank to a two-month low. The cost to insure Mexican government bonds against default jumped the most in a month. Bloomberg.com read more