Full Breakdown
Canada’s Retaliatory Tariffs Block CUSMA Renewal
6/11/2026, 2:52:21 PM
Tariff Dispute Hinders CUSMA Renewal
Canada maintains retaliatory tariffs on over 300 U.S. steel, aluminum and auto products. U.S. Trade Representative Jamieson Greer says the tariffs obstruct progress on the Canada-U.S-Mexico Agreement (CUSMA) as the July 1 renewal deadline approaches.
Background & Context
CUSMA, enacted in 2020, requires a 16-year renewal. Canada lifted most U.S. tariffs last fall but kept sector-specific duties on more than 300 items. Greer warned that loopholes let third-country hubs, such as China, bypass rules of origin.
Data & Impact
Over 300 U.S. steel, aluminum and auto items remain under Canadian tariffs, covering a large portion of bilateral trade; Canada-U.S. commerce represents roughly two-thirds of U.S. states’ imports. The duties create supply-chain uncertainty, delay investment and risk jobs. Without a long-term CUSMA renewal, the pact would move to an annual review for up to ten years, increasing market volatility.
Official Statements & Responses
Greer said Canada’s “different approach” and the remaining tariffs impede negotiations. LeBlanc called recent talks “positive” and said Canada seeks to remove the sectoral duties. Ford urged a swift deal, promising a boom for both economies. Champagne highlighted Canada’s role as the United States’ largest customer and the need for a constructive narrative. Hallan questioned the tangible outcomes of recent trade missions, noting the stakes for Canadian paycheques.
Criticism & Opposition
Hallan’s remarks reflect broader criticism that high-level meetings have not produced concrete progress on tariff removal, raising concerns among industry groups dependent on U.S. inputs.
Conflicting Reports & Gaps
The sources do not list the specific products still subject to tariffs, nor quantify how many of the over 300 duties have been lifted since the fall concessions.
Verbatim Quotes
- “Right now they have a different approach to the United States. They have some retaliatory tariffs still in effect and that makes it a problem for us to negotiate.” — Jamieson Greer, U.S. Trade Representative
- “We would expect the same for Canada, when we’re able to get to some kind of an arrangement with them,” — Jamieson Greer, U.S. Trade Representative
- “If we get this deal done, both economies are going to boom, the likes of which either country’s never seen before, because no one likes the uncertainty.” — Doug Ford, Ontario Premier
What’s Next
Canada and the United States will continue informal talks in the weeks before July 1, aiming to lift the sectoral tariffs. If no agreement is reached, CUSMA will shift to an annual review for up to ten years.
