Trump Threatens Tariffs on Canada, Testing Trade Relations Ahead of USMCA Review

President-elect Trump’s proposed 25% tariffs on Canadian imports over border security concerns strain U.S.-Canada ties and complicate upcoming trade negotiations.

President-elect Donald Trump has proposed 25% tariffs on Canadian imports, citing concerns over border security and fentanyl trafficking.
Canada’s Prime Minister Justin Trudeau and provincial premiers are meeting to coordinate a response, emphasizing a unified ‘Team Canada’ approach despite internal political tensions.
The USMCA trade agreement, slated for review in 2026, faces uncertainty as Trump’s tariff threats could undermine the deal entirely.
Canada has significant leverage in trade negotiations, including its critical exports of energy, rare earth minerals, and other resources vital to U.S. industries.
Trump’s tariff threats arrive during a politically sensitive time for Canada, with Trudeau’s low approval ratings and a looming federal election in 2025 adding to the challenges.