Former chief negotiator says Canada-U.S. CUSMA review unlikely to resume soon

Former chief negotiator Steve Verheul told a BMO Capital Markets webcast that the recent breakdown of Canada-U.S. trade talks has put the CUSMA review process in question. He said the expected interim deal on Sections 338 and 232 tariffs was intended to launch a formal review, but last-minute U.S. demands—such as equal treatment for Canadian trucks, restrictions on Canada’s trade freedom, and limits on cultural protections—prompted Canada to withdraw.

Verheul highlighted that the United States has imposed 50 percent tariffs on roughly $28 billion of Canadian goods, while Canada has responded with retaliatory duties on $27.6 billion of U.S. imports and doubled steel and aluminum tariffs. He added that U.S. President Donald Trump has threatened further tariff hikes on Canadian autos and trucks. Verheul believes growing domestic opposition to Trump’s tariff stance and broad business support for the North American pact could eventually bring both sides back to the table, though not soon.