Talks to update NAFTA began a year ago, but in recent weeks have been held between just the USA and Mexico.
He said that talks with Canada will begin soon and that teh country could join the agreement or sign their own bilateral deal with America depending on what was agreed.
He said it would be replaced in part by the newly named United States-Mexico Trade Agreement.
But exactly what kind of announcement remains unclear.
Canada, which has not participated in the negotiations in recent weeks, had said the dispute settlement system was a priority.
That has not been confirmed by the Canadian government.
"I believe the president is on the phone", Trump said, getting no response.
It wasn't long before Twitter users stepped up and took action, and oh boy did the Trump's mishap and Veep's closing credits really complement each other.
Guajardo and Mexico's Foreign Minister Luis Videgaray have been shuttling back and forth to Washington for more than a month for meetings with Lighthizer to try to iron out the bilateral stumbling blocks, including rules for the auto market, before the end of August.
And there are political reasons to keep Canada inside the regional bloc: "Mexico will have a hard time selling "Trump's deal" back home if Canada does not think it is a good deal", said Daniel Ujczo, a trade attorney with Dickinson Wright PLLC.
In Washington, Pena Nieto said Mexico will wait for Canada to be "integrated in this process". "Our farmers are going to be so happy".
"When Mexico sends its people, they're not sending their best.they're bringing those problems with us", he said at a campaign rally.
Automakers are climbing as investors hope the agreement will prevent tariffs on imported cars. "It's a tremendous amount of money and it's a very simple negotiation". "One way or another we'll have a deal with Canada". But I think we'll give them a chance to have a separate deal. Trump also called the deal that involved two-thirds of the original members of NAFTA "one of the largest trade deals ever made".
As he announced the move, Trump said he would drop the name NAFTA for the trade arrangement because of the bad connotations of a deal that has been criticized as contributing to an outflow of jobs from the U.S.to Mexico.
Resolving a contentious auto issue does boost NAFTA's prospects.
The United States has demanded Canada phase out its supply management system, that regulates the production of dairy, eggs and poultry, within a decade. Trump tweeted Monday morning.
Another key part of the new trade deal increases the percentage of a auto that must be made in North America to qualify for lower-tariff import into the USA.
U.S., Mexican and Canadian stocks opened higher on Monday on optimism about a trade deal.
Other contentious issues between Canada and the United States include dispute resolution, intellectual property and a USA demand for a five-year sunset clause. A month ago, representatives from both the USA and Mexico returned to the table after Mexico's elections forced a two-month hiatus on negotiations. Therefore, this is not a bilateral deal.
A spokesman for Canadian Foreign Minister Chrystia Freeland issued a statement on Monday that warned against jumping to conclusions.
Canada must now return, hat in hand, for a deal. Perhaps as a hardline negotiating tactic, the president also suggested that the United States might hike tariffs on Canadian cars in response, a move that analysts with CIBC markets reported in July could cut Canada's vehicle exports to the U.S. almost in half, and could throw the manufacturing province of Ontario into recession.