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AL CIRCLE

Canada is not worried about slow trade talks: aluminium tariffs and China deal seen as no risk to USMCA

EDITED BY : 3MINS READ

usmca

Trade talks between Canada and the United States are slow. Still, Canadian Trade Minister Dominic LeBlanc said this is not a concern ahead of the review of the United States-Mexico-Canada Agreement (USMCA) this summer, despite US tariffs on Canadian goods, including aluminium and Canada’s January electric vehicle deal with China.

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LeBlanc said discussions with US officials are ongoing and “productive,” and there is no need to be pessimistic. He added that this is an improvement from last fall, when Donald Trump said the US had ended trade talks with Canada over Ontario government TV ads.

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Talks between both countries resumed earlier in March. This comes as US tariffs, in place for nearly a year on Canadian vehicles, steel, aluminium, and other goods, continue to affect relations. However, most Canadian exports, including auto parts, are still protected under the USMCA. The agreement will undergo a six-year review this summer.

At the same time, the United States and Mexico are also holding trade talks. US officials have indicated that these discussions are moving faster than those with Canada.

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This slower pace has raised concerns in Canada’s auto industry. Brian Kingston, head of the Canadian Vehicle Manufacturers’ Association, said Canada may lack the “urgency and engagement that’s necessary to get a deal done”. He added that while removing all tariffs may be difficult, it should remain the goal.

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LeBlanc rejected concerns that Canada is moving too slowly or could be excluded from the agreement if the US and Mexico pursue a separate deal. He said both Canada and Mexico remain committed to a trilateral agreement. He added that while smaller bilateral deals are possible, the main goal is to keep the existing North American trade framework.

He also said Canada’s January trade deal with China is not expected to affect USMCA talks. The agreement, announced by Mark Carney on January 16 in Beijing, allows up to 49,000 China-made electric vehicles to enter Canada in 2026 at a 6.1 per cent tariff. In return, China will reduce tariffs on Canadian agricultural and seafood exports.

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The deal is similar to a soybean export agreement the United States made with China in 2025. He also said it is not listed as a major concern by the US Trade Representative ahead of USMCA discussions.

A US report released on March 2 instead highlighted issues such as dairy market access and Canada’s Online Streaming Act as key concerns in trade relations.

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