Tariff deal unlikely before U.S. midterms, ex-Canada trade chief says

Canada's former chief trade negotiator Steve Verheul does not anticipate a tariff agreement with the United States before the U.S. midterm elections. Verheul suggested that while the U.S. administration might seek a win before the fall elections, negotiations are more likely to extend into the following year.

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while there could be a window ahead of the midterms this fall when the U.S. administration is looking for a win, he thinks it’s more likely that negotiations stretch into next year.

Verheul voiced doubts about the substantive value of deals struck with the U.S. thus far, questioning their long-term viability. He led Canada's negotiations during the renegotiation of the North American free trade pact under former U.S. President Donald Trump.

His remarks came at an event hosted by the Bank of Montreal, which focused on the trade outlook ahead of the formal review of the Canada-U.S.-Mexico Agreement (CUSMA) on July 1. Verheul noted that the trade deal currently protects most Canadian exports from U.S. tariffs, indicating the pact's continued benefits for the United States.

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I don’t think anything close to a good deal for Canada has been put on the table so far and he questions whether the agreements other countries have signed with the United States will stand the test of time.

Officials from Canada, Mexico, and the United States are scheduled to hold their first trilateral meeting to review CUSMA on July 1. Joy Nott, a partner at KPMG Canada specializing in tax, trade, and customs, discussed the potential impact on Canadian businesses and households amidst ongoing trade negotiation uncertainties.

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the trade deal shields most Canadian exports from U.S. tariffs which is a good sign the pact still offers benefits to the United States.