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Canada could lose 100K jobs with U.S. losing 200K if CUSMA dies: report
🇨🇦 Canada /Economy & Trade

Canada could lose 100K jobs with U.S. losing 200K if CUSMA dies: report

From Global News · () English

Summarized and contextualized by DistantNews.

At a glance

News Documents & data Context piece
  • A report by the Canadian American Business Council warns that the collapse of the Canada-U.S.-Mexico Agreement (CUSMA) could lead to over 100,000 job losses in Canada and more than double that in the United States.
  • The report suggests that a successful renegotiation of the deal could create approximately 98,000 jobs in Canada and 137,000 in the U.S. by 2027.
  • Tensions are high as the U.S. plans to impose 50% tariffs on Canadian goods on August 19, following Canada's removal of U.S. alcohol from provincial shelves and other retaliatory measures.

The Canada-U.S.-Mexico Agreement (CUSMA), also known as USMCA in the United States, faces significant uncertainty, with a new report from the Canadian American Business Council predicting dire consequences should the deal break down. The report estimates that over 100,000 jobs in Canada and more than 200,000 in the U.S. could be lost if the trade agreement collapses.

Successful renegotiation of USMCA would create an additional 137,000 American jobs and 98,000 Canadian jobs in 2027 relative to the status quo.

— Canadian American Business Council reportThe report outlines the potential job creation benefits of successfully renegotiating the trade deal.

Adding to the economic volatility, the U.S. announced in July that it would not renew the deal in its current form, necessitating annual reviews that increase uncertainty for businesses. The situation is further complicated by U.S. President Donald Trump's vow to impose sweeping 50% tariffs on a wide range of Canadian goods, scheduled to take effect on August 19. The report highlights that a successful renegotiation of the USMCA could create an additional 137,000 American jobs and 98,000 Canadian jobs by 2027, relative to the status quo.

Conversely, the breakdown of the agreement would result in a significant net loss of jobs, with the report projecting 214,000 fewer jobs in the U.S. and 102,000 fewer in Canada. Beth Burke, CEO of the Canadian American Business Council, emphasized the need for predictability for businesses on both sides of the border, stating, "The choices made today will determine North America’s economic competitiveness for decades to come."

By contrast, the breakdown of USMCA would be accompanied by 214,000 and 102,000 fewer jobs, respectively.

— Canadian American Business Council reportThe report details the projected job losses in the U.S. and Canada if the trade agreement collapses.

Canadian Trade Minister Dominic LeBlanc is currently in Washington, alongside Canada's chief negotiator Janice Charette, to work towards a renewed trade deal. Trump's decision to impose tariffs was reportedly a response to what the U.S. deems "discriminatory" measures by Canada, including provincial and territorial boycotts of American alcohol products, Canada's retaliatory tariffs on U.S.-made vehicles and auto parts, and quotas on American dairy imports under Canada's supply management system. These actions by Canada were, in part, a reaction to Trump's trade war and his previous remarks about making Canada the "51st state."

The choices made today will determine North America’s economic competitiveness for decades to come.

— Beth BurkeBeth Burke, CEO of the Canadian American Business Council, commented on the importance of the current trade negotiations.
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Originally published by Global News. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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