The move by Trump to notify Congress that he planned to sign a deal with Mexico in 90 days and would include Canada "if it is willing" avoided what many in the U.S. business community and Congress had seen as a worst-case scenario, according to Bloomberg.

The president threatened earlier this week to go ahead with a bilateral trade agreement with Mexico that would leave out Canada, which he on Friday again accused of "ripping us off."

Sending the notification to Congress effectively sets a new clock for the Nafta negotiations. Under rules set by Congress, the administration is now facing a 30-day deadline to provide a full text of the agreement.