Prime Minister Mark Carney stated that the U.S. is likely to continue imposing tariffs on specific industries even after the renegotiation of the Canada-U.S.-Mexico Agreement on trade. Canada-U.S. Trade Minister Dominic LeBlanc recently returned from Washington after engaging in high-level discussions with U.S. officials regarding trade and tariffs, with no concrete agreements reached.
LeBlanc, along with Carney, visited the White House for talks with President Donald Trump, where Trump expressed optimism about the outcome. However, LeBlanc later updated on social media that no deal had been finalized. Carney emphasized that ongoing discussions are vital for achieving trade resolutions that provide certainty for both countries.
Future negotiations to update the Canada-U.S.-Mexico Agreement, known as CUSMA in Canada, are scheduled to commence next year. Carney acknowledged that these talks might not resolve all existing issues, especially in sectors like steel, aluminum, autos, forest products, and pharmaceuticals, where the U.S. has imposed strategic trade actions globally.
Carney highlighted Canada’s focus on addressing sectoral tariffs, which are expected to persist even with a revised CUSMA. Trump confirmed the continuation of tariffs on Canadian goods, emphasizing the historical imposition of tariffs between the two countries, particularly on U.S. agricultural exports such as dairy products.
Trump also raised the possibility of renegotiating the trade deal or pursuing alternative agreements that may benefit individual countries. Despite uncertainties about the future of a trilateral trade agreement, Carney expressed optimism about achieving a favorable outcome for Canada.
The majority of Canadian trade with the U.S. currently enjoys tariff exemptions under CUSMA, following an executive order signed by Trump in July. Mexican President Claudia Sheinbaum remarked that not all trade deal discussions need to be trilateral but emphasized the legal status of CUSMA in all three countries, requiring a significant revision process for any changes to be made.
