Thousand Islands and Rideau Lakes Senator Bob Runciman, while acknowledging he is distant from happenings in Washington, said he believes Trump's actions were a negotiating tactic. "And I said I've had it".
Canada said it was ready to come to talks on renewing NAFTA at any time. "They're two countries I really like", Trump said.
"It is a clear indication that they (in the White House) are wanting changes but we will have to see what emerges", said Paul Ferley, assistant chief economist at Royal Bank of Canada.
News of the possible USA pullout from NAFTA rattled financial markets on Wednesday. Trump even got on the phone with his Canadian and Mexican counterparts, and the White House issued a late-night statement saying a consensus emerged to renegotiate the trade deal that Trump pilloried as a candidate.
Trump signed an executive order Saturday directing the Commerce Department and the USA trade representative to conduct a study of US trade agreements.
President Donald Trump has been admonished by his supporters due to a bevy of broken campaign promises, but on the crucial issue of trade, he has not wavered.
The loonie has been buffeted by trade rhetoric and actions this week, including the imposition of US import duties on Canada's softwood lumber. By forcing them to source more expensive United States vehicle parts, they would face the challenge of competing against foreign auto companies that don't deal with the same restrictions. I looked forward to terminating. Yesterday he said Nafta had been "horrible" for the United States but very good for Canada and Mexico.
Trudeau said he reminded Trump they both were elected on a similar platform of helping people find and keep jobs.
By Thursday afternoon, Trump had changed his mind - the U.S. would stay in NAFTA.More news: Losses for tech and materials companies send U.S. stocks lower
Canada sends 75 percent of its exports to the United States.
"Trump told him (Trudeau) he was thinking about withdrawing from NAFTA and said he wanted our opinion", said the source.
Trump tweeted early Thursday that he has agreed to remain a partner in the much-discussed trade agreement in calls he received from Mexican President Enrique Peña Nieto and Canadian Prime Minister Justin Trudeau.
Ross argued Thursday that Mexico hasn't enforced rules of origin, accusing it of sourcing some parts from China and claiming they were sourced from Mexico.
It also states NAFTA is responsible for "waves" of illegal immigration and the closure of "tens of thousands of factories and manufacturing establishments" in the U.S. This is because just days after his inauguration, Trump used an executive order to withdraw the United States from the Trans-Pacific Partnership deal.
Several agriculture lobby groups in Washington were told USAgriculture Secretary Sonny Perdue, confirmed by the Senate on Monday, met with Trump on Wednesday evening to dissuade him from withdrawing from Nafta.
Nonpartisan congressional research found in 2015 that NAFTA isn't responsible for an exodus of jobs south of the border, nor for a big jobs boom in the US.
The U.S. Congress has yet to authorize negotiations and there might be less than a year to get a deal before the Mexican presidential election.