As Canada and the United States head toward a July review of the US-Mexico-Canada trade agreement (USMCA, known in Canada as CUSMA), Ottawa has formed an advisory council with representation from affected industries, but no formal talks have begun between the two countries. Washington maintains sector-specific tariffs on steel, aluminum and autos, and U.S. officials have criticized Canadian dairy rules, liquor bans and digital policies as “trade irritants,” while Canada argues U.S. tariffs violate existing commitments.
Canada’s Prime Minister Mark Carney said last week that the United States cannot “dictate the terms” of the trade agreement but noted that the review “will take some time.”
Uncertainty around USMCA and persistent tariffs are complicating supply chains and investment decisions. The United States and Canada are each other’s largest trading partners, but relations have been strained under the Trump administration’s aggressive tariff policies.