In a recent update, Prime Minister Mark Carney highlighted the continuation of U.S. tariffs on specific sectors post the renegotiation of the Canada-U.S.-Mexico Agreement on trade. Trade Minister Dominic LeBlanc concluded high-level talks in Washington, with no concrete deal but a commitment to ongoing discussions. Carney, along with LeBlanc, met President Donald Trump at the White House, where Trump expressed optimism about the talks, despite no finalized agreement reported by LeBlanc on Friday.
Carney emphasized the need for further negotiations to bring certainty to both countries, particularly focusing on sectors such as steel, aluminum, autos, forest products, and pharmaceuticals, which face strategic tariffs from the U.S. These tariffs, Carney explained, are likely to persist even with the revised CUSMA. Trump, during the Oval Office meeting, mentioned the continuation of tariffs on Canadian goods, citing historical tariffs and the possibility of different trade deals in the future.
While the majority of Canadian trade with the U.S. currently enjoys tariff exemptions under CUSMA, discussions on the trade deal’s future remain uncertain. Mexican President Claudia Sheinbaum acknowledged the need for a profound review if any changes are to be made to CUSMA, emphasizing its legal status in all three countries. The renegotiation talks for CUSMA are expected to commence next year, with a focus on addressing outstanding issues in the agreement.