Canada Looks to Renew Trade Talks After US Supreme Court Rejects Trump Tariffs
Celebrations in Canada were brief after the US Supreme Court struck down former President Donald Trump’s global tariffs, including the controversial “fentanyl” levies on Canada, China, and Mexico.
Canada welcomed the decision, with Trade Minister Dominic LeBlanc calling the previous tariffs “unjustified” on X. However, he emphasized that Ottawa faces critical work ahead, particularly dealing with remaining duties on steel, aluminium, and automobiles.
Limited Impact on Canadian Tariffs
Although the Supreme Court’s decision invalidates the global tariffs, most trade under the “fentanyl” tariffs—around 85%—was already exempt under the USMCA, limiting the immediate effect on Canadian exports. The White House confirmed that USMCA exemptions will continue under a new 10% tariff replacing the struck-down duties.
USMCA Review Looms
A key issue for Canada remains the upcoming review of the Canada-US-Mexico trade deal (USMCA), covering a market of over 500 million people. All three partners must decide whether to extend the deal by July 1, marking the first formal trade discussions since talks were halted last October over a Canadian anti-tariffs advertisement.
LeBlanc will meet US Trade Representative Jamieson Greer to discuss the review. Greer highlighted ongoing trade barriers, including dairy import rules and the Online Streaming Act, which affects American media companies.
Canada Seeks Diversified Trade
While the US remains Canada’s largest trading partner, importing about 75% of its exports, Canada is actively seeking to expand trade with other nations, aiming to double non-US exports by 2035.
Dennis Darby, CEO of Canadian Manufacturers & Exporters, stressed that predictable, rules-based trade is crucial for businesses on both sides of the border, and successful USMCA renewal is essential to prevent recurring trade disruptions.
