Trump's Trade Threats: Canada and the Looming Tariff Deadline

The USMCA, also known as CUSMA, is an existing trade agreement between Canada, the United States, and Mexico. Trump wants to replace key parts of the agreement. At issue are autos, steel, aluminum and other goods from Canada. The United States has for many decades targeted Canadian softwood as unfair trade because it says the fees that producers in Canada pay to chop down trees on Crown land are too low. It has also repeatedly alleged that Canadian producers are dumping lumber into the U.S. market at below fair value. Without an agreement by Aug. 1, Canadian exports to the U.S. will face an across the board tariff of 35 per cent. Even if this is raised to 35 per cent after Aug. 1, most Canadian products would be exempt. Trump’s targeting of Canada is part of his larger global trade war, which is aimed at reaching deals in which other countries accept more protectionism in the U.S. economy.

Maintaining the existing exemption from tariffs for goods complying with the Canada-U.S.-Mexico Agreement (CUSMA).

Trump has threatened a 35% tariff on Canadian goods entering the U.S.

Removing or reducing Trump’s Section 232 tariffs on Canadian products such as steel, aluminum and autos and prevent further such levies on products such as copper.

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