US President Donald Trump gave Canada a three-day reprieve on tariffs that had been due to come into effect overnight, suggesting the countries were on the verge of a trade agreement. The 50% levies would have affected 5% of Canadian exports to the US; Washington separately said the new deal would also include “economic security commitments” and digital trade “alignment.”
An agreement could provide momentum for talks to renew the USMCA North American trade pact; US-Mexico talks have dragged on, and the White House has publicly opposed renewing the transcontinental deal. Though Washington ostensibly sees an opportunity to exact better terms, the long-term cost of its tactics may be significant: Canadians and Mexicans now view China more favorably than the US.
