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Monday, October 1, 2018

Trump: North American trade deal is 'a new dawn' for the US auto industry

President Donald Trump heralded a new trade deal struck late Sunday night as "a new dawn" for the U.S. auto industry.

Trump touted the "extraordinary agreement" between the U.S., Mexico and Canada in his first public statement in the White House's Rose Garden on Monday morning.

Trump's remarks came hours after the United States and Canada struck a deal to replace the North American Free Trade Agreement with a new trilateral pact called the USMCA, for United States-Mexico-Canada Agreement.

Early Monday morning, Trump tweeted his congratulations to Mexico and Canada and praised the agreement as a "great deal." The new trade pact was forged during several months of contentious negotiations.

Markets applauded the development. The Dow Jones industrial average surged more than 260 points in late-morning trade.

Among the details in the agreement are requirements for 75 percent of auto content to be made in North America, up from 62.5 percent, and for 40 to 45 percent of that auto content to be made by workers making at least $16 an hour.

Trump's Rose Garden speech was also peppered with criticisms for Democrats, as well as international trading partners such as China and the European Union, who Trump said have treated the U.S. "so unfairly."

The three nations still need to sign the deal, which is expected before the end of November. Congress also needs to approve USMCA, which might not happen this year given the post-election lame-duck session and other pressing issues, such as keeping the government funded.

Trump said Monday that he "just spoke" with Mexican President Enrique Pena Nieto, as well as Canadian Prime Minister Justine Trudeau. The U.S. will send the new agreement to the two trading partners by the end of November before passing it along to Congress, Trump said.

This is breaking news. Please check back for updates.

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