Canada pursues direct deals as U.S. tariffs on key sectors persist despite CUSMA renegotiation talks
The future of Canada-US trade remains uncertain as Prime Minister Mark Carney warns that sector-specific US tariffs are here to stay, regardless of upcoming negotiations to update the Canada-US-Mexico Agreement (CUSMA).
According to Carney, even with a revised CUSMA, American trade actions against Canadian steel, aluminum, autos, forest products, and pharmaceuticals are likely to persist, as these sectors are considered “strategic” by the US administration.
BNN Bloomberg reports that Canada is responding by pursuing targeted agreements to address these tariffs directly, rather than relying solely on the broader CUSMA renegotiation.
As reported by CBC News, Carney emphasized that “this is not one simple trade deal which will resolve all the issues,” highlighting the complexity and sectoral nature of the disputes.
Trade Minister Dominic LeBlanc recently returned from Washington after a week of high-level discussions, but no breakthrough was reached.
LeBlanc stated that talks will continue in hopes of bringing “greater certainty to both of our countries,” but acknowledged there is still no deal to report.
During a White House meeting, US President Donald Trump made clear that tariffs on Canadian goods will remain in place, regardless of whether CUSMA is renegotiated or replaced by other deals.
Trump also questioned the necessity of a renewed trilateral agreement, suggesting that the US could pursue separate deals with Canada and Mexico if it proves more advantageous.
Carney told business leaders that North America’s integrated supply chain is essential for US competitiveness, especially in the auto sector, according to the Financial Post.
He asserted, “For America to be fully competitive, to be globally competitive in autos, you need USMCA,” but acknowledged that this view is not universally shared in the US.
Despite the majority of Canadian trade with the US being exempt from tariffs under CUSMA, the ongoing imposition of duties on key sectors continues to create uncertainty for Canadian industries and their workforces.
Carney concluded that the era of stable, predictable trade relations between the two countries may be over, stating, “Our relationship will never again be what it was”.
