U.S. tariffs raise concerns about USMCA validity, says Carney

Prime Minister Mark Carney has expressed concerns about recent U.S. trade actions affecting the USMCA trade agreement. He believes these actions require a broader discussion about Canada’s trade and security relationship with the U.S. During a visit to Iqaluit, Carney mentioned that U.S. tariffs imposed by the Trump administration have raised doubts about the effectiveness of the trade deal among Canada, the United States, and Mexico. He recognized that the U.S. is trying to protect its industries and address issues like the fentanyl crisis, but this has led to confusion and concern in Canada. Carney mentioned that the U.S. has recently threatened tariffs on imports, including steel and aluminum, which particularly impact Canada. In retaliation, Canada has imposed its own tariffs on U.S. goods. Legal experts agree that these unilateral tariffs violate the principles of the USMCA. The USMCA is set for renewal in 2026, but discussions may start sooner due to ongoing trade tensions. Key issues include Canada’s dairy sector and various tax policies that the U.S. wants to address. Looking ahead, potential new tariffs are expected on April 2, although details on how these will be implemented remain unclear. U.S. Treasury Secretary Scott Bessent has indicated that countries will receive proposed tariff rates based on how they handle U.S. goods. He mentioned that these rates could vary significantly from country to country. Experts have pointed out that most Canadian tariffs on U.S. goods are low, raising questions about how reciprocal tariffs would be calculated. Analysts emphasize that U.S. officials’ statements about tariffs can sometimes be vague or inaccurate. The specifics of how the U.S. will approach future tariffs remain uncertain.