Overview

• President-elect Donald Trump has proposed 25% tariffs on Canadian imports, citing concerns over border security and fentanyl trafficking.
• Canada’s Prime Minister Justin Trudeau and provincial premiers are meeting to coordinate a response, emphasizing a unified ‘Team Canada’ approach despite internal political tensions.
• The USMCA trade agreement, slated for review in 2026, faces uncertainty as Trump’s tariff threats could undermine the deal entirely.
• Canada has significant leverage in trade negotiations, including its critical exports of energy, rare earth minerals, and other resources vital to U.S. industries.
• Trump’s tariff threats arrive during a politically sensitive time for Canada, with Trudeau’s low approval ratings and a looming federal election in 2025 adding to the challenges.