In the wake of renewed U.S. tariff threats and a flurry of global trade talks, Canada’s ambassador to the United States has made it clear that Ottawa will not sacrifice the United States-Mexico-Canada Agreement (USMCA) or key economic sectors for a short-term executive deal with President Donald Trump.
Speaking days after Prime Minister Mark Carney’s White House meeting, Ambassador Kirsten Hillman said Canada seeks the removal of U.S. tariffs but not at the expense of long-term trade certainty.
Protecting Core Sectors Over Political Expediency
Hillman emphasized that while Canada is open to negotiation, any deal must protect vital industries such as automotive, steel, and aluminum.
“It would be great to do it as soon as possible, but not at the expense of getting a deal that does not preserve the strength of these sectors,” she said.
Tariffs currently in place include:
- 25% on Canadian steel and aluminum
- 25% on non-U.S. content in vehicles
- Tariffs on critical minerals, potash, and energy (as high as 25%, though some drop to 10%)
Canada responded with countertariffs on tens of billions in U.S. imports.
Trump Pushes Executive Agreements, Canada Declines
Several countries are pursuing executive-only trade agreements with President Trump that bypass U.S. Congressional approval. Canada, however, has no intention of abandoning the ratified USMCA, which it sees as a critical legal framework for continental trade.
“It’s an important feature of our trade with the Americans,” Hillman said.
Unlike bilateral deals struck with countries such as the United Kingdom, Canada remains committed to an enforceable agreement with long-term stability and legal certainty.
Security and Trade to Be Handled Separately
While President Trump has floated the idea of combining trade and security in one broad agreement, Canadian officials oppose this approach. Hillman noted that discussions around critical minerals, fentanyl control, and defense are best conducted separately from formal trade negotiations.
This separation is essential, she said, to avoid future U.S. tariff threats tied to unrelated political or military disputes.
Domestic Pressures Rise in the U.S. Over Tariff Costs
U.S. consumers are increasingly feeling the effects of Trump’s tariffs. Hillman noted growing concern among American families and businesses over rising prices on everyday goods like strollers and car seats.
“Americans suffering because they can’t afford essential items is very important for us,” she said.
While this economic pressure could add urgency to trade talks, whether it translates into political momentum remains uncertain.
USMCA Review Still on Track for 2026
Though some have speculated about early renegotiation, Hillman said it’s still unclear whether discussions will begin ahead of the scheduled 2026 USMCA review. For now, Canada is focused on preserving its existing trade framework, even as other nations rush to sign quicker, less formal deals with the White House.
Canada Prioritizes Stability Over Speed
Despite a volatile trade environment, Canada is holding firm. With critical sectors at stake and millions of jobs on the line, officials remain wary of any agreement that lacks the structure and enforceability of USMCA.
As more than a dozen countries pursue side deals with President Trump, Canada is instead taking a strategic pause — ensuring any future deal reflects both economic stability and legal accountability.
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