Trade Uncertainty Grows
Trump’s latest threat comes as the United States, Canada, and Mexico prepare for a scheduled renegotiation of their trilateral trade agreement later this year. Trump has already dismissed the pact as “irrelevant” and has repeatedly used tariff threats as leverage in trade negotiations since returning to office.
While Trump has at times paused or withdrawn tariff plans during talks, businesses and trade groups warn that the uncertainty itself carries economic consequences.
“We hope the two governments can come to a better understanding quickly that can alleviate further concerns for businesses who face the immediate consequences of torqued up uncertainty,” said Matthew Holmes of the Canadian Chamber of Commerce.
The standoff underscores the fragile state of U.S.-Canada trade relations at a time when both countries are navigating slowing global growth, geopolitical realignments, and mounting pressure on supply chains.
