Canada Urged to Begin CUSMA Review with U.S. Amid Tariff Uncertainty
Former Trump Official Recommends Immediate Action as Trade Tensions Rise
As trade uncertainty looms, a former senior economic adviser to Donald Trump is urging Canada to start reviewing the Canada-United States-Mexico Agreement (CUSMA) as soon as possible. Meanwhile, Trump himself denies using tariff threats as leverage for renegotiation.
Everett Eissenstat, who served as deputy director of Trump’s National Economic Council during his first term, stated in an interview on Rosemary Barton Live that delaying the review process could put Canada at a disadvantage.
Canada Should Move First on CUSMA Talks
“There’s no point in waiting a couple of years for this to really be engaged,” Eissenstat told host Rosemary Barton. “I would begin the process as soon as Canada can be ready because we know it’s going to occur.”
Under the terms of CUSMA, a mandatory review of the trade pact is scheduled for 2026. However, Trump—who made revisiting the deal a campaign promise—could seek an early renegotiation if he wins a second term.
By initiating discussions now, Canada could position itself as “one of the first movers,” Eissenstat explained, allowing the country to influence trade and economic policies that could serve as a model for other nations. “So I would encourage a quick engagement. I think it’s more productive than delay,” he added.
Trump Denies Using Tariffs as Pressure Tactic
On Tuesday, The Wall Street Journal published a report suggesting that Trump is leveraging tariff threats against Canada and Mexico to push for an early renegotiation of CUSMA. The report, citing sources familiar with Trump’s thinking, indicated that he aims to use economic pressure to secure better terms for the U.S.
However, Trump dismissed these claims the same day, instead doubling down on his criticisms of Canada and Mexico for what he alleges is a failure to curb illegal immigration into the United States.
“Millions and millions of people [are] coming into our country that shouldn’t be here,” Trump stated, without directly addressing the trade deal’s future.
Canadian Response: Tariffs and Provincial Divisions
As Trump shifts his timeline for potential tariffs, Canadian officials are preparing countermeasures. Initially, Trump vowed to impose a sweeping 25% tariff on Canadian and Mexican goods on his first day in office. Now, he suggests the tariffs could take effect on February 1.
In response, Canada has drafted a retaliatory tariff plan targeting $37 billion worth of American goods, with the potential to escalate to $110 billion if Trump follows through.
However, there is ongoing debate among Canadian leaders on how to approach the tariff response. Prime Minister Justin Trudeau supports a dollar-for-dollar retaliation strategy, but some provincial leaders disagree. Saskatchewan Premier Scott Moe warned that such a move could be too harmful to Canadian businesses and consumers.
Former Alberta premier Jason Kenney, speaking on Rosemary Barton Live, strongly advocated for matching tariffs. “Weakness is catnip for somebody like President Trump,” Kenney stated. “Canadian leadership needs to be strong, united, and to some extent ambiguous about what our responses might be. We just need [the U.S.] to know that there will be a firm response.”
What’s Next for Canada-U.S. Trade Relations?
With the mandatory CUSMA review still two years away, the question remains whether Canada should wait or take proactive steps to safeguard its economic interests. If Trump secures another term, his aggressive trade stance could put significant pressure on Canada to renegotiate.
As discussions unfold, business leaders, policymakers, and trade experts will be closely monitoring how Canada positions itself in what could be another turbulent chapter in North American trade relations.
Source : Swifteradio.com
