After calling the North American Free Trade Agreement (Nafta) the "single worst trade deal ever" and a job "killer" throughout his election campaign, Donald Trump yesterday announced he will not scrap the pact "at this stage".
Speaking with Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau, the US President reversed his stance and said he will begin renegotiating the deal, a White House statement said.
"President Trump agreed not to terminate Nafta at this time and the leaders agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation of the Nafta deal to the benefit of all three countries," a White House statement said.
"It is my privilege to bring Nafta up to date through renegotiation. It is an honour to deal with both President Pena Nieto and Prime Minister Trudeau, and I believe that the end result will make all three countries stronger and better," Trump was quoted as saying in the statement.
Read more: Is Donald Trump the Populist dead?
The announcement came after reports suggested Trump was drafting an executive order to withdraw the US from the trade deal.
Mexican and Canadian currencies rebounded in Asian trading while the US dollar dropped 0.6 per cent on the Canadian dollar and one per cent on the peso.
Trump is no stranger to slashing trade agreements, however. In the fist days of his presidency, the President issued an executive order that pulled the US from the Trans-Pacific Partnership trade deal, one of Obama's signature policies.
The US President is also facing difficulties on one of his top campaign promises: the Mexican border wall. Trump has backed down on his first effort to secure funding for the infamous wall to avoid a shutdown of the US federal government on his 100th day in office.