A trade agreement has been reached between the U.S and Mexico.
U.S President Donald Trump announced the agreement Monday morning at the White House as the two sides have been trying to renegotiate the North American Free Trade Agreement (NAFTA).
Trump has said NAFTA was disastrous for the U.S.
Canada was not involved in these talks but Trump says negotiations will start soon with Canada.
Meanwhile, the deal could benefit Canada depending on the details says the Executive Director of the Cross Border Institute at the University of Windsor.
Dr. Bill Anderson says the devil is in the details but the announcement of a bilateral trade 'understanding' between the two country, could be something that is acceptable to Canada.
"Even though maybe Canada would have liked to have been in these discussions, the results are things that maybe acceptable to Canada, " he says. "I think a big part of this was trying to eliminate how much could go into cars coming out of cars plants in Mexico, they have very low costs labour."
As a result, U.S President Donald Trump has invited Canada to rejoin trade talks with its NAFTA partners--but he also threatened Canada that if a deal can't be reached, then he would impose tariffs on automotive imports.
"To say that putting tariffs on Cars from Canada into the U.S is the easiest way to deal with it, is a complete misunderstanding of how automotive production takes place between the United States and Canada," says Anderson.
Anderson points out if tariffs are placed on Canadian cars going into the United States, it means tariffs are also put on a huge proportion of U.S content in those cars.