Canada welcomed the US Supreme Court's decision to strike down President Donald Trump's global tariffs, though celebrations were brief. These tariffs, including those related to fentanyl impacting Canada, China, and Mexico, were deemed "unjustified," according to Canada's Trade Minister Dominic LeBlanc.
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LeBlanc emphasized ongoing challenges, particularly concerning tariffs on steel, aluminum, and automobiles, which Trump intends to maintain. He also highlighted the upcoming review of the Canada-US-Mexico trade agreement (USMCA), a crucial part of the North American trade landscape involving over 500 million people.
The Supreme Court's ruling has limited impact on Canadian tariffs, as 85% of trade under these "fentanyl" tariffs was already exempt due to USMCA. However, Canada's position on new 10% global tariffs, which Trump plans to raise to 15%, remains cautious.
Despite the new global tariffs, the White House confirmed that USMCA exemptions will continue. Beyond tariffs, the USMCA review presents a key issue. Discussions must occur this summer to decide on extending the deal, first established in the early 1990s. While integrated economies have benefited, there are uncertainties.
During a visit to Mexico, LeBlanc reaffirmed commitment to the trilateral trade agreement. However, the Trump administration has shown interest in bilateral deals instead of renewing USMCA.
LeBlanc plans to meet US Trade Representative Jamieson Greer to progress on review talks before the July 1 deadline. This marks the first formal trade discussion after a hiatus last October, stemming from a Canadian ad opposing tariffs.
Greer noted challenges in negotiations with Canada compared to Mexico, citing trade barriers like restrictions on US wine and spirits and irritants such as Canada’s Online Streaming Act, affecting US media companies.
Amidst negotiations, Canada is diversifying trade beyond the US, which currently accounts for 75% of its exports, with ambitions to double non-US exports by 2035.
Canadian business leaders maintain that uncertainty persists. Dennis Darby, CEO of Canadian Manufacturers & Exporters, emphasized the importance of a successful USMCA renewal to prevent trade disruptions, advocating for predictable, rules-based trade on both sides of the border.
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Adapted by ASEAN Now · Source · 21 Feb 2026