Canada is standing its ground in the face of pressure to strike a quick trade deal with the United States. Even though U.S. tariffs are hurting Canadian industries like steel, aluminum, and cars, Canadian officials say they won’t give up the protection and stability provided by the current trade agreement, known as the USMCA.
The United States-Mexico-Canada Agreement (USMCA) is a deal that was carefully negotiated and approved by all three countries back in 2020. It replaced the older NAFTA pact and sets clear rules for trade between the countries.
Now, with the U.S. government offering fast-track deals to other nations, there’s talk about changing or bypassing this agreement. But Canada says no. It doesn’t want a quick handshake deal that could put its industries at risk.
The tariffs imposed by the U.S. have been tough. Canadian steel and aluminum face a 25% tax when sold to American buyers. The same tax applies to vehicles made in Canada, especially if some of their parts come from other countries. Some goods like critical minerals and potash get a slightly lower tariff of 10%, but that still adds up. These costs make Canadian products more expensive in the U.S., hurting sales and threatening jobs at home.
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Why Canada Won’t Rush
Canada’s trade officials say they are eager to remove these painful tariffs but not at the cost of long-term security. They want any new deal to be fair and stable, especially for industries that have already been hit hard. Canada is not interested in swapping a solid, legally binding agreement for a deal that depends only on promises from the U.S. president.
This is important because the type of deals currently being offered by the U.S. are not approved by Congress. They are executive agreements, which can be changed more easily and might not offer the same level of protection. Canada doesn’t want to end up in a situation where rules can be shifted overnight, leaving its businesses vulnerable.
Officials also point out that some U.S. communities are feeling the pain from these tariffs too. Everyday items like car seats and strollers have become more expensive, and some products are even hard to find. This pressure inside the U.S. might help Canada in its talks, but there’s no certainty.
At the same time, Canada is also discussing other matters with the U.S., like fighting the illegal trade of dangerous drugs and working together on important minerals. But they want these talks to be separate from the trade agreement. They believe mixing everything together could create more problems and might even give the U.S. more reasons to impose new tariffs.
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While many countries are rushing to make new deals with the U.S., Canada is taking a different path. These other nations are settling for quick executive agreements that don’t have the same legal strength as a full treaty like the USMCA. Canada’s position is clear: it values the USMCA because it offers a stable foundation for trade with both the U.S. and Mexico.
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Canadian leaders worry that combining trade talks with military or security matters could be dangerous. If the U.S. is unhappy about something unrelated — like defense spending — it might respond by slapping new tariffs on Canadian goods. That’s a risk Canada isn’t willing to take.
Even though Canadian officials admit it would be great to fix the trade fight soon, they insist that timing must not come before getting the right deal. They believe that protecting key industries and jobs is more important than grabbing a fast agreement that could unravel later.
For now, the current USMCA agreement is still in place, and any official renegotiation isn’t scheduled until 2026. Whether talks start earlier remains uncertain. What is clear is that Canada will not trade away its hard-won protections just to ease short-term pain. The country is committed to keeping its industries safe and making sure that any new deals bring lasting benefits.
