Canada-U.S. trade tensions flare as CUSMA review exposes old tariff wounds
Tensions over trade between Canada and the U.S. have escalated ahead of the upcoming CUSMA review. Prime Minister Mark Carney has called the existing free trade pact 'effectively broken' due to past U.S. tariffs. Meanwhile, mayors from key cities along the border are pushing Washington to avoid further trade barriers.
The dispute centres on tariffs imposed by former U.S. President Donald Trump on Canadian goods, including steel, aluminium, lumber, and auto sector products. Carney claimed the U.S. failed to follow agreed CUSMA protocols when these tariffs were introduced. His comments came as Trade Minister Dominic LeBlanc prepared to travel to Washington for the review scheduled this summer.
In a separate development, a U.S. judge recently ruled that businesses are entitled to refunds for Trump's tariffs, which the Supreme Court declared illegal in February 2026. However, this ruling has not yet affected the ongoing CUSMA negotiations, with discussions so far focusing only on refund claims by U.S. importers.
The Great Lakes and St. Lawrence Cities Initiative, representing nearly half of all Canada-U.S. trade, has also weighed in. Toronto Deputy Mayor Paul Ainslie stressed the importance of maintaining strong trade ties for the region's $12.98-trillion economy. The group urged Washington to strengthen CUSMA and reject any new tariffs on Canadian goods.
Canada is seeking to rebuild trust through the CUSMA review, while U.S. cities and businesses push for stability. The outcome will shape future trade relations, particularly for industries already hit by past tariffs. Both sides now await the results of this summer's negotiations.
Read also:
- American teenagers taking up farming roles previously filled by immigrants, a concept revisited from 1965's labor market shift.
- Weekly affairs in the German Federal Parliament (Bundestag)
- Landslide claims seven lives, injures six individuals while they work to restore a water channel in the northern region of Pakistan
- Escalating conflict in Sudan has prompted the United Nations to announce a critical gender crisis, highlighting the disproportionate impact of the ongoing violence on women and girls.
