Business leaders see CUSMA as a key to resolving the Canada-US trade war, urging fast-tracked talks to ease tariffs and restore economic stability.
CUSMA Emerges as Canada’s Lifeline Amid US Trade Tensions
A Surprising Turn in Washington
After weeks of escalating tariffs and uncertainty, business leaders are looking to the Canada-U.S.-Mexico Agreement (CUSMA) as a potential solution to the ongoing trade war with the United States. Following a high-stakes Oval Office meeting between Prime Minister Mark Carney and President Donald Trump, CUSMA-known as USMCA in the US-has unexpectedly returned to the spotlight as a framework for progress.
Trump’s Endorsement Opens the Door
Despite President Trump’s history of criticizing trade deals, he publicly defended CUSMA, calling it “very effective” but stressing the need for all parties to follow its rules. This endorsement, though cautious, signals a possible reset in trade negotiations and offers Canada a clear path to address tariff disputes and broader economic tensions
Why CUSMA Matters Now
CUSMA, which modernized NAFTA with new rules for digital trade, intellectual property, and stricter origin requirements, is designed to ensure preferential access for Canadian goods-if they meet compliance standards. Recent US tariffs have hit Canadian exports hard, but exemptions for CUSMA-compliant goods mean businesses have a powerful incentive to align with the agreement’s requirements.
Business Leaders Urge Action
Industry groups and the Canadian Chamber of Commerce have welcomed the renewed focus on CUSMA, seeing it as a way to contain volatility and restore confidence. They’re urging leaders to fast-track trilateral talks, possibly on the sidelines of the upcoming G7 Summit, to address outstanding issues and reinforce North American cooperation.
The Road Ahead
While CUSMA isn’t scheduled for formal review until 2026, experts say there’s no reason to wait. With tariffs disrupting supply chains and investment, leveraging CUSMA now could provide the stability Canadian businesses need. The coming weeks will be crucial as leaders decide whether to seize this opening or risk deeper economic fallout.
Curious about how CUSMA compliance could shield your business from tariffs? Let us know what you want to explore next!
