In a recent announcement, U.S. President Donald Trump's trade representative, Jamieson Greer, stated that tariffs will continue to be imposed on Mexico and Canada, despite their participation in the continental trade pact known as the Canada-U.S.-Mexico Agreement (CUSMA). Greer expressed that while most countries have reluctantly accepted the concept of tariffs under the Trump administration, Canada is taking a notably different approach.
During an event at the Council on Foreign Relations, Greer emphasized that Canada appears to be facing unique challenges in negotiations regarding CUSMA. He indicated that the ongoing tariff policies are complicating relations and that it is difficult to determine the future trajectory of these negotiations with Canada. Currently, the Trump administration has formally begun CUSMA negotiations with Mexico, but discussions with Canada have not yet initiated.
The review of CUSMA presents a trio of options for each nation involved, with decisions due in July. Countries can choose to renew the agreement for another 16 years, withdraw from it entirely, or signal both non-renewal and non-withdrawal, which would instigate an annual review process lasting up to a decade. Greer has hinted that the administration is unlikely to automatically approve a renewal of the agreement without thorough consideration. He is expected to inform the U.S. Congress about the upcoming decisions next week.
Last year, negotiations with Canada were effectively halted following President Trump’s displeasure over an advertisement from Ontario that cited former President Ronald Reagan's criticisms of tariffs. However, relations seemed to improve in March when Canadian Trade Minister Dominic LeBlanc, along with chief negotiator Janice Charette and newly appointed Ambassador to the U.S. Mark Wiseman, met with Greer to discuss trade matters.
Despite regular communication between Greer and Canadian officials, he acknowledged the presence of trade challenges between the two countries. Greer reiterated that the continental trade pact has largely protected Canada and Mexico from the more severe impacts of Trump's global tariffs, with a current rate of 10 percent not applicable to goods compliant under CUSMA. He pointed out that trade in critical areas such as energy, critical minerals, and fertilizers has remained largely unaffected due to their economic importance.
However, Canada continues to face significant consequences from Trump's specific sectoral tariffs on products including steel, aluminum, cabinetry, and automobiles. Notably, Greer reinforced Trump's longstanding rhetorical question regarding automobile production in Canada: "Why do we make cars in Canada?" This remark signals little hope for negotiations aimed at reducing automobile tariffs, posing challenges for future discussions.
Greer underscored the administration's intent to prioritize North American supply chains for national security purposes. If the United States can secure favorable terms in negotiations, the Trump administration plans to offer preferential treatment within the continent while still maintaining tariffs.
In parallel developments, Trade Minister Dominic LeBlanc held discussions with provincial and territorial trade ministers on May 30, 2026. These conversations centered around the evolving landscape of North American trade and the implications of the ongoing CUSMA review.
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