Is CUSMA the best path out of the trade war with the U.S.?

Peter Armstrong · CBC News

· Posted: May 07, 2025 4:00 AM EDT | Last Updated: 10 minutes ago

Business leaders were hopeful the White House gathering betwixt Prime Minister Mark Carney and U.S. President Donald Trump would supply a model for however commercialized talks whitethorn progress. 

After the 2 leaders spoke successful the Oval Office, an improbable victor appears to beryllium emerging: the Canada-U.S.-Mexico Agreement connected commercialized (CUSMA, oregon USMCA arsenic it's called successful the United States).

At his Oval Office gathering with Carney, Trump was asked if USMCA is dead.

"No, it was really precise effectual and it's inactive precise effective. But radical person to travel it. That's been the problem, radical haven't followed it," Trump said.

In the precise adjacent breath, helium mused that the commercialized woody was a transitional measurement that whitethorn not beryllium needed successful the future.

But his clasp of the agreement might beryllium conscionable capable to reset the parameters of the Canada-U.S. commercialized talks.

"I deliberation the president has opened a wide unfastened doorway and we request to thrust done it," said Goldy Hyder, president of the Business Council of Canada.

CUSMA compliance

Since the outbreak of the commercialized dispute, Hyder has said repeatedly that CUSMA is the champion mechanics to resoluteness the conflict. He says galore Canadian companies didn't person to instrumentality steps to go CUSMA compliant due to the fact that they were given "Most Favoured Nation" status nether erstwhile commercialized deals.

Trump has repeatedly accused the Canadians of cheating. And immoderate accidental having truthful galore products that are non-compliant with CUSMA added substance to that. 

RBC economics says the immense bulk of Canadian exports could beryllium CUSMA compliant if the companies went done the process.

"By our count, much than 94 per cent of Canadian exports to the U.S. are apt compliant with CUSMA rules of origin," wrote RBC's lawman main economist Nathan Janzen.

WATCH | What happened during the Trump-Carney meeting:

Hyder says going done the process of making definite astir Canadian products are really compliant nether the caller deal, arsenic opposed to aged deals, volition assistance assuage immoderate of the concerns from the White House.

He says that message was made large and wide by the president during his nationalist statements with Carney.

"A designation precise publically that the champion mode guardant is done the USMCA," said Hyder.

He says framing the quality done CUSMA besides serves to incorporate immoderate of the volatility associated with the tariffs and threats emanating from the White House.

An accidental for Canada?

One occupation truthful acold has been the sprawling quality of the president's complaints.

Trump has railed against everything from autos and alloy to vigor and making Canada the 51st state.

The issues were truthful large and truthful varied, it was hard to spot however the quality whitethorn end.

Longtime veterans of Canada-U.S. commercialized didn't expect Trump to look from the gathering with Carney arsenic the defender of the commercialized deal.

"I was alternatively amazed that President Trump was defending CUSMA arsenic a bully deal," said erstwhile diplomat and long-serving person Frank McKenna.

That could beryllium advantageous, since Canada has issues it wants to resoluteness arsenic well, according to McKenna.

"We request to marque them recognize this is simply a two-way negotiation," said McKenna.

One contented adjacent the apical of that database was highlighted by Carney arsenic helium told Trump Canada wants immoderate changes to the woody arsenic well.

"Part of the mode you person conducted these tariffs has taken vantage of existing aspects of USMCA," helium told Trump.

Possible adjacent steps

Businesses and concern associations person repeatedly told the politicians to find a mode to get talks moving.

The uncertainty caused by the tariffs is weighing connected concern business successful some countries. The tariffs themselves are hurting businesses crossed the continent.

At archetypal blush, concern associations seemed optimistic aft the gathering astatine the White House.

The Canadian Chamber of Commerce said a narration reset was overmuch needed. President and CEO Candace Laing said she was impressed with the code of the gathering and the consciousness of momentum it gave.

"Our 2 countries moving and making things unneurotic volition beryllium mutually beneficial for decades to come, if we are capable to support discussions similar today's going," said Laing successful a connection Wednesday.

The question is however to get negotiations really moving.

"We agreed to person further conversations successful the coming weeks and we are looking guardant to gathering successful idiosyncratic astatine the G7 Summit successful Kananaskis successful Alberta," said Carney.

CUSMA is not technically expected to beryllium renegotiated until 2026. But Hyder and others accidental there's nary request to wait. In fact, Hyder says Carney should suggest a gathering of Canada, Mexico and the U.S. connected the sidelines of the G7 to leap commencement those talks.

"Call them to the G7, person a sidebar North American leaders summit, enactment connected the agenda: where bash we spell from here?" says Hyder.

One cardinal question lingering implicit the commercialized warfare has been what an exit ramp mightiness look like.

At the White House this week, Trump laid retired 1 wide path. He whitethorn alteration his mind; the president has a volatile nature.

But Hyder says Canada simply cannot fto the accidental to get talks going gaffe by.