Is CUSMA Canada’s Best Way Out of the U.S. Trade War? Business Leaders Say Yes

CUSMA Emerges as a Possible Solution to Canada-U.S. Trade Dispute
After Carney and Trump meeting, business leaders say trade pact could offer a path forward without waiting for 2026

Following a high-stakes meeting at the White House between Prime Minister Mark Carney and U.S. President Donald Trump, Canadian business leaders are increasingly pointing to the Canada-U.S.-Mexico Agreement, or CUSMA, as the most realistic and effective way to resolve the current trade tensions. The agreement, known as USMCA in the United States, may offer Canada a way to stabilize economic relations with its largest trading partner.

Speaking in the Oval Office after the meeting, President Trump said the agreement remains valid. “No, it was actually very effective and it’s still very effective. But people have to follow it. That’s been the problem, people haven’t followed it,” Trump said, according to CBC News.

Trump’s acknowledgment of CUSMA surprised some observers. Former diplomat and longtime political figure Frank McKenna told CBC News, “I was rather surprised that President Trump was defending CUSMA as a good deal.” He added that Canada also has concerns it wants to address and that negotiations need to be mutual. “We need to make them understand this is a two-way negotiation,” McKenna said.

Goldy Hyder, president of the Business Council of Canada, believes the president’s remarks signaled a critical opportunity for progress. “I think the president has opened a wide open door and we need to drive through it,” Hyder told CBC News. He has consistently argued that CUSMA is the best mechanism for resolving trade disputes and noted that many Canadian businesses still rely on older agreements or Most Favoured Nation status, rather than aligning fully with CUSMA standards.

Hyder emphasized that adjusting to the agreement’s rules could help reduce friction with the U.S. administration. “A recognition very publicly that the best way forward is through the USMCA,” he said. He added that this approach may help contain some of the uncertainty and volatility associated with the White House’s ongoing tariff threats.

Supporting that view, RBC Deputy Chief Economist Nathan Janzen wrote in an analysis that “by our count, more than 94 percent of Canadian exports to the U.S. are likely compliant with CUSMA rules of origin.” This suggests that with some effort, most Canadian exporters could adjust to the current trade framework without needing dramatic shifts.

While Canada has faced an array of challenges during this trade conflict, including tariffs on steel, autos, and energy, the tone of the Carney-Trump meeting gave business leaders a reason to be cautiously optimistic. Candace Laing, president and CEO of the Canadian Chamber of Commerce, said in a statement to CBC News, “Our two countries working and making things together will be mutually beneficial for decades to come, if we are able to keep discussions like today’s going.”

During the meeting, Carney also addressed the impact of U.S. tariffs and called for changes within the agreement. “Part of the way you have conducted these tariffs has taken advantage of existing aspects of USMCA,” he told Trump during their discussion.

Although CUSMA is not officially up for renegotiation until 2026, Hyder said there is no reason to wait. He suggested that Carney use the upcoming G7 Summit in Kananaskis, Alberta, as an opportunity to convene a trilateral meeting with leaders from Mexico and the United States. “Call them to the G7, have a sidebar North American leaders summit, put on the agenda: where do we go from here?” Hyder told CBC News.

Trump’s positions can often change, but business leaders argue that Canada should act while the door is open. As Hyder concluded, this may be the moment to turn CUSMA from a background agreement into the primary instrument for resolving North American trade tensions.

For continued updates on economic policy and international trade, visit Weekly Voice and the Canada news section.