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Opinion: Carpe diem, prime minister: Canada needs a coherent CUSMA strategy

27 0
01.08.2026

Many Canadians have rightly criticized U.S. President Donald Trump’s administration for its erratic and punitive approach to trade. It is difficult to accept that the American economy — which prospered enormously from global commerce — now treats international trade as a failed experiment.

Tariffs have become negotiating weapons, supply chains have become political leverage and economic integration is increasingly portrayed as a national vulnerability. Canadians have spent months attempting to understand this new reality, and it has been anything but smooth sailing.

The latest U.S. announcement adds another layer of confusion. Canada will face a new 10 per cent tariff under Section 301 of the U.S. Trade Act of 1974, although most CUSMA-compliant goods will be exempt, along with oil and gas. The immediate economic effect should therefore be limited.

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But the measure replaces temporary tariffs imposed after the U.S. Supreme Court rejected Trump’s previous legal rationale. Washington is now invoking forced labour — even though Canada already prohibits such imports — to preserve essentially the same protectionist architecture under another law.

Prime Minister Mark Carney is right — the justification has changed, but the objective has not.

CUSMA has consequently become both a shield and a target. It protects most Canadian exports from the new 10 per cent tariff, confirming that the agreement retains considerable value. Yet, Washington continues to bypass it.

Section 232 tariffs apply to automobiles, steel and aluminum,........

© Calgary Herald