U.S. Targets 2 Interim North America Trade Deals by End-2026 as $20 Billion Canada Tariff Threat Looms
Updated
Updated · The Globe and Mail · Jul 23
U.S. Targets 2 Interim North America Trade Deals by End-2026 as $20 Billion Canada Tariff Threat Looms
3 articles · Updated · The Globe and Mail · Jul 23
Summary
Jamieson Greer told senators he wants separate interim arrangements with Canada and Mexico ready as options for Donald Trump, Mark Carney and Claudia Sheinbaum before the end of 2026.
Core USMCA changes — including rules of origin and labor provisions — will likely slip into 2027, with Greer saying broader revisions could require more talks with Congress.
The timeline is the first explicit U.S. roadmap since Washington declined on July 1 to renew USMCA for another 16 years, pushing the pact into annual reviews through 2036.
Pressure on Ottawa intensified after the Trump administration threatened tariffs on about US$20 billion of Canadian exports under Section 338, with the duties delayed until mid-August.
Mexico has already held several bilateral rounds with Washington, while Canada has not begun formal USMCA talks; Greer said Ottawa signaled it would not retaliate as Carney moves to intensify negotiations.
Can piecemeal 'interim deals' fix the USMCA, or will they create more long-term uncertainty for businesses?
With new tariffs looming under a 1930s law, is a North American trade war now unavoidable?
Is the U.S. strategy fracturing the alliance needed to compete with China's economic influence?
50% U.S. Tariffs on Canada: The 2026 USMCA Review and the Future of North American Trade
Overview
The United States has sharply escalated trade tensions by imposing new 50% tariffs on over 500 Canadian goods, casting doubt on the future of any trade agreement with Ottawa. This move came just after President Trump appeared with Canadian officials at the FIFA World Cup final, fueling speculation that the announcement was deliberately delayed to avoid negative publicity. While Washington is pushing for quick interim deals with both Mexico and Canada, the tariffs have sparked concerns about even broader U.S. trade actions worldwide. These developments highlight a strategic and calculated approach by the U.S., increasing uncertainty for North American trade relations.