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U.S. President Donald Trump said Americans “don’t need” Canadian products and described the Canada-United States-Mexico Agreement (CUSMA) as “irrelevant,” remarks that have raised fresh concerns ahead of the mandatory review of the continental trade pact later this year.
Speaking Tuesday while touring a Ford Motor Company manufacturing plant in Michigan, Trump said the agreement’s future was of little importance to him. He claimed the deal could expire without affecting the United States, adding that Canada wants the agreement far more than Washington does.
Trump’s comments have unsettled both Canada and Mexico as the three countries prepare for a required review that will determine whether CUSMA is renewed, withdrawn, or subjected to annual negotiations. Canadian officials have already begun domestic consultations, and Canada’s minister responsible for U.S. relations is expected to meet American counterparts later this month to formally launch talks.
CUSMA has so far protected Canada and Mexico from the harshest effects of Trump’s broad tariffs. While the U.S. raised duties on Canada to 35 per cent last August over fentanyl concerns, goods that comply with CUSMA rules have remained exempt from those measures.
Despite this protection, Canadian industries continue to face pressure from separate U.S. tariffs targeting steel, aluminum, automobiles, lumber and other key sectors. Trump reiterated Tuesday that he remains committed to automobile tariffs, saying vehicles should be manufactured in the United States rather than Canada.
The president also downplayed U.S. reliance on Canadian raw materials, arguing that the country has sufficient domestic resources. His remarks come despite decades of deep integration between Canadian and American supply chains, particularly in the auto sector centered around Detroit.
CUSMA was negotiated during Trump’s first term and replaced the North American Free Trade Agreement. Although talks were contentious, the deal was ultimately hailed as a success by all three countries. Since returning to office, however, Trump has repeatedly questioned its value and previously described the agreement as “transitional” during a meeting with Canadian Prime Minister Mark Carney last year.
Under the review mechanism, Canada, the U.S. and Mexico must decide by July whether to renew the agreement for another 16 years, withdraw entirely, or allow negotiations to continue under annual reviews — a process that could prolong uncertainty for North American trade.