Carney has said the USMCA, which is up for review in 2026, is an advantage for Canada at a time when it is clear that the U.S. is charging for access to its market. Carney has said the commitment of the U.S. to the core of USMCA means that more than 85% of Canada-U.S. trade continues to be free of tariffs. He said the U.S. average tariff rate on Canadian goods is 5.6% and remains the lowest among all its trading partners.
But Trump has some sector-specific tariffs on Canada, known as Section 232 tariffs, that are having an impact. There are 50% tariffs on steel and aluminum imports, for example.
McKenna said he is hearing Canada might get some relief in steel and aluminum. “It could be 50% to 25% or agreeing on tariff-free quotas to allow the steel and aluminum to go through at last year’s levels,” he said.
The ties between the two countries are without parallel. About $2.5 billion (nearly $3.6 billion Canadian) worth of goods and services cross the border each day. Canada is the top export destination for 36 U.S. states. There is close cooperation on defense, border security and law enforcement, and a vast overlap in culture, traditions and pastimes.