Overview

• The White House last week increased tariffs on Canadian goods outside the USMCA from 25% to 35%, citing immigration and fentanyl smuggling concerns.
• Trade Minister Dominic LeBlanc described recent negotiations with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick as constructive.
• Prime Minister Mark Carney is expected to speak with President Trump in the coming days to press for tariff reductions and a new bilateral agreement.
• Canada disputes U.S. claims on fentanyl smuggling, noting it accounts for only about 1% of U.S. fentanyl imports and is implementing further reduction measures.
• Ottawa has imposed its own retaliatory tariffs and is pursuing alternative trade partnerships to lessen dependence on the U.S. market.