Prime Minister Mark Carney stated that trade talks with the U.S. are ongoing, with several unresolved issues set to be addressed in the upcoming USMCA review.
Canada’s Prime Minister Mark Carney announced yesterday, 23 September 2025, that trade discussions with the US are ongoing, with many unresolved issues expected to be addressed during the upcoming review of the United States-Mexico-Canada Agreement (USMCA).
He highlighted that while Canada currently benefits from the USMCA, which exempts compliant goods from US tariffs, there is room for improvement. Carney noted that both he and US President Donald Trump agree on the need for enhancements to the agreement.
He explained that Canadian and US officials have been engaged in talks about restructuring aspects of the deal, with much of the focus shifting to the formal review process, referred to as CUSMA in Canada.
The USMCA, which replaced NAFTA in 2020, allows goods to move tariff-free between the three countries (the US, Canada, and Mexico) if they are made entirely in North America or significantly transformed there using components from other countries.
Entering into force on 1 July 2020, the USMCA is a mutually beneficial win for North American workers, farmers, ranchers, and businesses. The Agreement creates more balanced, reciprocal trade supporting high-paying jobs for Americans and growing the North American economy.
The USMCA mandates a joint review by the US, Canada, and Mexico every six years. Last week, all three nations began public consultations in preparation for the review, scheduled for next year.
For months, Canada has been negotiating with Washington to establish a new economic and security framework aimed at eliminating all US tariffs on Canadian goods. However, these talks had hit a standstill.
Trump signed an executive order on 31 August 2025, raising tariffs on Canadian goods from 25% to 35% for products not covered by the US-Mexico-Canada trade agreement, effective 1 August 2025.
