Sectoral Tariffs, Not CUSMA, Are Focus of Trade Talks: Canadian Envoy to U.S.

Canadian negotiators are prioritizing the resolution of sectoral tariffs on steel, aluminum, and automobiles over the Canada-U.S.-Mexico Free Trade Agreement (CUSMA), according to Canadian ambassador to the U.S. Mark Wiseman. Wiseman stated that while most Canadian exports comply with CUSMA and are exempt from U.S. President Donald Trump's tariffs, specific sectors are affected by Section 232 tariffs. He described these tariffs as "biting" and potentially in violation of CUSMA, making them a pressing issue for the Canadian economy, businesses, and workers. Canada needs to "find a path forward on quickly" regarding these specific tariffs, Wiseman said. The focus for the negotiating team, led by Minister Dominic LeBlanc and chief negotiator Janice Charette, is on navigating these Section 232 tariffs, allowing them to "take a deep breath on the CUSMA review." Wiseman emphasized that the July 1 deadline for a review of the trade deal is not a critical juncture. He reminded that the agreement has a long expiration date, set to expire at 11:59 p.m. on June 30, 2036, and that a renewal would extend it further. The July 1 date marks the beginning of a renewal process, not a definitive end. Unlike other aspects of CUSMA, the sectoral tariffs are default to remaining in place and are causing significant harm to various sectors of the Canadian economy. Earlier this month, the White House announced a proclamation amending Section 232 tariffs, lowering them on certain aluminum, steel, and copper derivative products, as well as mobile industrial equipment.

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Those tariffs are the ones that are biting in terms of impact on the Canadian economy, Canadian business, Canadian workers and those sectoral tariffs are sitting outside, and are arguably in violation of, CUSMA.