US Maintains Tariffs as Canada Seeks New Trade Partnership

U.S. Trade Representative Jamieson Greer announced on May 27, 2026, that the United States will maintain tariffs on Canada and Mexico despite the Canada-United States-Mexico Agreement (CUSMA). Greer stated that tariffs will persist as long as the U.S. faces a large trade deficit and specifically cited Canada's retaliatory tariff policies as a point of tension. While the U.S. has begun formal negotiations with Mexico to revamp the pact, it has frozen official trade negotiations with Canada.

In response, Canadian Prime Minister Mark Carney visited New York on May 28 to pitch Canada as a premier investment destination at the Economic Club of New York. Carney advocated for a new partnership in the automobile, aluminum, and critical minerals sectors, arguing that a strong Canada serves U.S. interests. Simultaneously, Carney is pursuing a strategy of strategic autonomy by diversifying trade with the European Union, India, Indonesia, and China, and purchasing military aircraft from Sweden.

U.S. officials continue to pressure Canada for greater farm sector access and the repeal of an online streaming tax. Meanwhile, the Trump administration is conducting bilateral talks with Mexico in Mexico City and Washington, D.C., focusing on rules of origin and economic security. A decision regarding the renewal or withdrawal from the trade pact is due in July, with Canadian Trade Minister Dominic LeBlanc scheduled to travel to Washington to attempt a relaunch of talks.