The new agreement, called the United States-Mexico-Canada Agreement (USMCA), is aimed at bringing more jobs into the United States, with Canada and Mexico accepting more restrictive commerce with the US, their main export customer.
Chevrolet Equinox SUVs are parked awaiting shipment by CN Rail next to the General Motors Co (GM) CAMI assembly plant in Ingersoll, Ontario, Canada October 13, 2017.
The US and Canada have reached a deal to reform the North American Free Trade Agreement (Nafta) after last minute negotiations.
"Dairy farmers are not happy but when Trump made that his key "ask" over and over and over again, I don't think it could be ignored", said Jon Johnson of the CD Howe Institute, who helped negotiate the original 1994 NAFTA.
"The number one export industry in the country is the auto industry", he said, adding that Trump's threat to impose 25 percent tariffs on Canadian automobiles and parts was also off the table.
Replacement of NAFTA, which President Trump has referred to as "a ripoff", has been a major goal of the Trump administration since its beginning.
"It means far more American jobs, and these are high-quality jobs", he said.
Trump and Trudeau did speak briefly about the agreement by phone Monday.
The USMCA deal did not bring about the removal of USA 232 tariffs on steel or aluminum from Canada or Mexico. This came about a month after news of an agreement with Mexico, and Trump's insistence that he would be OK with a bilateral agreement and slap large tariffs on Canadian auto imports if our neighbors to the north didn't want to get on board.
"As we review the agreement text, we will be looking to ensure that this deal opens markets, raises standards, provides enforcement and modernizes trade rules so that manufacturers across the United States can grow our economy", NAM President and Chief Executive Officer Jay Timmons said.
In regards to China, Trump said the US could "go $267 billion more" when it comes to tariffs on products.
However, Mr Trump said it was too soon to talk to China, on which the United States has imposed three rounds of tariffs this year, about a trade deal.
Canada gave up some access to its dairy, egg and poultry industries but will keep its agricultural supply management system and avoid punishing auto tariffs under the new North American trade deal.
Mexican foreign secretary Luis Videgaray said: "It's a good night for Mexico and for North America". "Class 7 milk pricing in Canada caused problems for USA manufacturers in two different ways", said Eric Meyer, the president of HighGround Dairy in Chicago.
-Canada trade. Canada's tariffs on dairy imports can approach 300 per cent. USA dairy farmers have also complained about Canadian policies that priced the US out of the market for some dairy powders and allowed Canada to flood world markets with its own versions.
Trump, for his part, said the accord would return the United States to a "manufacturing powerhouse".
The plan to revamp the 24-year-old NAFTA kicked off in August 2017 with the USA looking to rework the agreement in its favour, cut the trade deficit with Canada and Mexico, and pull more manufacturing jobs back to the US.
THE FACTS: That's a fair reading of one of the agreement's most significant changes - though dairy only accounts for about 0.1 per cent of U.S.
A NAFTA collapse could have caused United States farmers, a key Trump constituency, to lose access to major agricultural markets in Canada and Mexico at the same time that China has halted purchases of USA soybeans and other commodities due to a tariff war.
For the US oil industry, which was anxious that Mexico's incoming president, Andres Manuel Lopez Obrador, will treat foreign investors unfavorably in the energy sector, the deal provided new assurances.
Trump has used US tariffs on billions of dollars' worth of imported goods from China and other nations as a negotiating tactic and said the North American deal offered evidence that his approach was working.