U.S. signals no full tariff relief for Canada in future trade talks

The United States is signalling that Canada should not expect full relief from American tariffs in any future trade agreement, according to comments from President Donald Trump’s chief trade representative following the State of the Union address.

Speaking to reporters on Capitol Hill after President Donald Trump’s speech Tuesday night, U.S. Trade Representative Jamieson Greer said any new trade arrangement with Canada would likely include tariff measures. He indicated that even a renewal of the Canada-United States-Mexico Agreement may not guarantee a fully tariff-free framework.

Greer suggested that further negotiations would depend on Canada opening more sectors of its economy, particularly dairy, to U.S. producers. Canada’s supply-managed dairy system has long been a point of contention in cross-border trade talks, including during negotiations that replaced the North American Free Trade Agreement with CUSMA in 2020.

The remarks represent one of the clearest signals yet from the Trump administration that it intends to shift away from the tariff-free trade model that has shaped North American commerce since 1994. Greer said the current version of CUSMA has not delivered sufficient growth in U.S. industrial production, suggesting Washington wants stricter terms in a renewed pact.

The future of the trilateral agreement remains uncertain, with key decisions expected by July 1. For Canadian exporters, including agricultural producers in Alberta and manufacturing firms in Ontario and Quebec, the outcome could have significant economic implications if tariffs remain or expand under a revised framework.