Trump’s trade czar says tariffs will remain on Canada, Mexico despite trade agreement

WASHINGTON — U.S. President Donald Trump’s commerce czar mentioned there will likely be tariffs in place on Mexico and Canada though the nations are a part of a continental commerce pact.

United States Commerce Consultant Jamieson Greer mentioned Tuesday that almost all nations all over the world have “begrudgingly” accepted tariffs are a part of the Trump administration’s ongoing insurance policies and have been prepared to proceed negotiations.

“Canada’s method has been totally different,” Greer mentioned throughout an occasion on the Council on Overseas Relations.

Greer was requested concerning the state of negotiations with Ottawa across the Canada-U.S.-Mexico-Settlement on commerce, referred to as CUSMA. Greer mentioned Canada is in a “totally different spot” on the subject of accepting Trump’s tariffs and it’s “onerous to see the place that ends.”

The Trump administration has begun official CUSMA negotiations with Mexico however they haven’t began with Canada.

The CUSMA assessment units up a three-way alternative for every nation to make in July. They will renew the deal for an additional 16 years, withdraw from it or sign each non-renewal and non-withdrawal — which might set off an annual assessment that would preserve negotiations going for as much as a decade.

Greer has beforehand advised the Trump administration is unlikely to rubberstamp a renewal. He’s required to tell U.S. Congress concerning the determination subsequent week.

Trump froze negotiations with Canada final yr as a result of he was angered by an Ontario-sponsored advert quoting former president Ronald Reagan criticizing tariffs.

There gave the impression to be a thaw in relations after Canada-U.S. Commerce Minister Dominic LeBlanc — together with Ottawa’s chief negotiator Janice Charette and newly appointed Ambassador to america Mark Wiseman — met with Greer in March.

Greer mentioned Tuesday that he speaks along with his Canadian counterparts frequently however “our sense is that we’ve, with Canada, some commerce challenges.”

The continental commerce pact has largely shielded Canada and Mexico from the worst impacts of Trump’s tariffs. The present 10 per cent world tariffs don’t apply to items compliant below CUSMA.

Greer pointed to commerce in power, vital minerals and fertilizer between the nations, saying it had remained “untouched” by Trump’s tariffs as a result of they had been frequent areas of financial profit.

Canada is being slammed by Trump’s separate sectoral tariffs on items like metal, aluminum, cabinetry and vehicles.

In an indication that there’s no room to barter decrease vehicle tariffs, Greer repeated Trump’s well-known declare about autos, saying, “Why can we make vehicles in Canada?”

“I feel on a few of these points it’s going to be a difficult negotiation, however in some sectors of the economic system it has been superb and it is going to be superb,” Greer mentioned.

The Trump administration desires to prioritize provide chains in North America for nationwide safety motive, Greer mentioned. If america can get good phrases, the administration is trying to give preferential therapy on the continent, he added, however tariffs will stay.

In the meantime, LeBlanc met with provincial and territorial commerce ministers Monday. A information launch mentioned they mentioned the evolving North American commerce atmosphere and the CUSMA assessment.

This report by The Canadian Press was first printed Could 26, 2026.

Kelly Geraldine Malone, The Canadian Press

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