CEDAR RAPIDS, IA - JUNE 21: President Donald Trump speaks at a rally on June 21, 2017 in Cedar Rapids, Iowa. Trump spoke about renegotiating NAFTA and building a border wall that would produce solar power during the rally. (Photo by Scott Olson/Getty Images)

Auto industry and President Trump are at odds over a major trade agreement

President Donald Trump has threatened to withdraw from the North American Free Trade Agreement next year if a deal can't be renegotiated, and the auto industry has launched a new coalition to support NAFTA.

According to AutoBlog, auto trade associations that represent Ford, General Motors, Toyota, Volkswagen, Hyundai and others have launched a coalition called "Driving American Jobs" to convince Trump and policy makers that NAFTA has played a major role in creating jobs in the auto industry.

NAFTA has been in effect since 1994, and it involves Mexico and Canada. Trump said he would withdraw from the deal early next year if it wasn't fair, though he told Fox Business Network that the deal will "probably" be renegotiated.

The "Driving American Jobs" coalition believes that if Trump withdraws from NAFTA, it will have a drastic effect on jobs in America. Auto companies believe production jobs would be at risk, and it could have a major negative effect on the auto industry as a whole.

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The statement on the Driving American Jobs home page states that the auto industry is "winning" with the current NAFTA deal.

"We need you to tell your elected officials that you don't change the game in the middle of a comeback. We're winning with NAFTA. Tell Washington: Don't change the game in the middle of a comeback."

The current NAFTA agreement states that a minimum of 62.5 percent of material in a car or light truck made in the area must be from the United States, Canada or Mexico to enter the market tariff-free.

Trump wants to renegotiate the deal where 85 percent of the material in a car or light truck must be made in North America, which would give the United States 50 percent of the total.

Basically, this could come down to who blinks first. Another possible solution would be the two sides meeting somewhere in the middle, but the auto industry clearly believes changing the deal would have a negative impact on jobs throughout the country.