U.S. President Donald Trump says he has little interest in updating the Canada-United States-Mexico Agreement (CUSMA), arguing the trade pact benefits Canada and Mexico far more than the United States.
Speaking to Fox News, Trump said he would rather the U.S. operate independently, adding, “Mexico and Canada need us, we don’t need them,” and suggesting the continental trade deal is not essential for the United States.
The comments come as Canada-U.S. Trade Minister Dominic LeBlanc returned to Washington alongside Canada’s chief trade negotiator, Janice Charette, for another round of talks aimed at securing a broader trade agreement with the Trump administration.
Prime Minister Mark Carney has said his government is focused on negotiating a comprehensive deal that goes beyond CUSMA, while also seeking the removal of U.S. tariffs on key Canadian industries, including steel, aluminum, lumber and automobiles.
The negotiations are taking place ahead of a planned August 19 implementation date for new 50 per cent U.S. tariffs on certain Canadian goods. The Trump administration says the tariffs are a response to Canada’s retaliatory trade measures and policies affecting U.S. motor vehicles, dairy and alcohol.
While products such as energy, potash, critical minerals and fish would remain exempt, many Canadian exports that currently enter the U.S. duty-free under CUSMA could face the higher tariffs.
Trump has also floated the idea of imposing additional tariffs over wildfire smoke drifting from Canada into the United States. Carney responded by saying Canada is doing everything possible to combat the wildfires, noting the country’s vast forests and widespread drought conditions have made this year’s fire season especially severe.
