Carney Responds to Trump as CUSMA’s Future Comes Under Question Again

Canadian Prime Minister Mark Carney says it is “no secret” that U.S. President Donald Trump dislikes the North American trade agreement known in Canada as CUSMA. Carney was responding to Trump’s comments at the G7 summit on June 17, where the U.S. president said he would prefer not to renew the agreement and argued that the United States would do “better” without it.

CUSMA, known in the United States as USMCA, replaced NAFTA and came into force on July 1, 2020. Canada, the United States and Mexico are now approaching the mandatory six-year review of the deal. If all three countries agree to extend it, the agreement would remain in force for another 16 years, until 2042. If they do not agree, annual reviews would begin, while the current agreement would remain scheduled to expire in 2036.

Carney stressed that the core structure of CUSMA remains in place and still covers a major share of Canadian exports. He said Canada–U.S. Trade Minister Dominic LeBlanc and U.S. Trade Representative Jamieson Greer continue to work through outstanding issues. LeBlanc has also said the July 1 date is not a “cliff,” as talks may continue afterward.

The agreement already includes a withdrawal mechanism: any party may leave after giving six months’ written notice. In that case, CUSMA would remain in force for the remaining members, while countries could pursue bilateral arrangements.

For Canada, the issue is especially sensitive because its economy depends heavily on trade with the United States. Trump’s remarks therefore add uncertainty for businesses, exporters and provinces closely tied to the American market.