But it still faces a lengthy path to congressional approval after serving for two decades as a political football for American manufacturing woes.
But analysts say the new agreement isn't too different from the original NAFTA deal.
"We are not going to allow our steel industry to disappear", Trump said, adding that Sunday's deal would not have happened without the tariffs.
But he noted that the agreement would need to be ratified by Congress, a step that could be affected by the outcome of the fall elections as Democrats seek to regain majorities in the House and Senate.
The president became aware of Freeland's attendance at the "Tyrant" event as a plot to prevent Trump from meeting the prime minister at the United Nations and agreeing prematurely to a deal, a source said.
"For those babies out there who keep talking about tariffs", this deal would not have happened without tariffs, Trump told reporters during a almost 80-minute event in the White House Rose Garden.
Canada, the US' second largest trade partner, was excluded from a revamped NAFTA deal separately negotiated between Mexico and the USA in August after nearly a year of negotiations. "We don't like their representative very much". The US president has regularly called it a "disaster" for American workers and manufacturers.More news: Brewers turn to Chacin for tiebreaker against Cubs
While changing provisions of NAFTA and bringing down United States trade deficits were key White House goals in the trade talks, the agreement largely leaves the broader deal intact. So the nuclear option was deployed: telling the president about Freeland and reminding him about the summer G7 meetings in Quebec, where Trudeau's closing news conference so agitated Trump that he used his Twitter feed to attack the prime minister from the confines of an airborne Air Force One.
He said any final agreement "must be judged on how it benefits and protects middle class families and the working people in our country".
Joining in that chorus was Ontario Premier Doug Ford, who called on Ottawa to compensate dairy farmers who were "thrown under the bus" by the federal government in the new three-country trade agreement.
U.S. Rep. Joaquin Castro, D-Dist.
Dave Taylor, chairman of board of B.C. Dairy Association, says there is a lot of frustration and anger the Canadian government did not heed the industry's wishes and he says his industry will lose an additional 3.6 per cent of the domestic market to the U.S. Animated by seventeenth century mercantilist ideas about trade deficits, all Trump seems to know for sure is that the deficits in merchandise trade are always and automatically bad, and that all existing trade agreements, particularly multilateral agreements like the North American Free Trade Agreement (NAFTA), that produce such deficits are therefore likewise always bad.
Trump had threatened to go ahead with a revamped NAFTA - with or without Canada. The president had made that a major campaign promise during the 2016 campaign.
Just hours before a midnight deadline, the USA and Canadian governments agreed to a deal that would allow US farmers greater access to Canada's dairy market and address concerns about potential US auto tariffs, officials from both countries said.More news: Iraqi model and social media star fatally shot in Baghdad
The NAFTA dispute-resolution process will also be kept in the new deal.
The Canadian source said Canada had agreed to a cap on its automotive exports to the United States in the event that the Trump administration imposes global autos tariffs on national security grounds.
NAFTA reduced most trade barriers in North America, leading to a surge in trade between the three countries. He said this will help manufacturing of the pharmaceutical sectors.
The new pact will require regional content of 75 percent for automobiles, and also that 40 to 45 percent of vehicles coming to the U.S.be produced in plants paying at least $16 per hour.
"I don't think it did".
Trump's "America First" trade policies, particularly his escalating trade war with China, are aimed at boosting U.S. manufacturing, but they have spooked investors who worry that supply lines could be fractured and global growth derailed. "Class 7 milk pricing in Canada caused problems for US manufacturers in two different ways", said Eric Meyer, the president of HighGround Dairy in Chicago. "He's a professional. I'm a professional", Trump said, calling it a "fair deal". Under the tariffs on USA goods that Canada threatened to enact earlier this year, OH would have been the state hardest hit, thanks to products made in the state by companies such as Whirlpool and Procter & Gamble.
A side letter published along with the main text of the agreement leaves out a percentage of eligible auto exports from tariffs - a move viewed as a win for the Canadian auto industry.More news: North and South Korea begin removing landmines along border
"Honda is encouraged to see the United States, Mexico and Canada reach a new trilateral agreement", said Edward Cohen, vice president for governmental relations at Honda. "The threat of capricious auto tariffs has been lifted, stabilizing future investment, " he said in a statement.