US President Donald  Trump on Monday said he plans to terminate the existing North American Free Trade Agreement (NAFTA), as he announced a new tentative agreement between the United States and Mexico that he described as "one of the largest trade deals ever made," Fox News reported.

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I'll be terminating the existing deal and going into this deal," the president said in the Oval Office, calling it a "big day for trade."

But the president said Monday “we’ll see” if Canada can still be part of the trade pact, leaving open the possibility of separate agreements.

"We are starting negotiations with Canada pretty much immediately," Trump said.

“They used to call it NAFTA, we are going to call it the United States-Mexico Trade Agreement, and we will get rid of the name NAFTA,” Trump said. “It has a bad connotation because the United States was hurt very badly by NAFTA.”

According to a fact sheet from the United States Trade Representative, the agreement includes new rules of origin to incentivize manufacturers to source goods and materials in North America – including requiring 75 percent of auto content be made in the United States and Mexico.

Officials in Canada, though, on Monday still expressed optimism over a deal. 

“Canada is encouraged by the continued optimism shown by our negotiating partners,” a spokesman for Canada's minister of foreign affair, Chrystia Freeland, said Monday. “Progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement.”