USMCA review talks begin as aluminium and steel tariffs continue to pressure North America

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Fresh talks around the United States-Mexico-Canada Agreement (USMCA) are set to begin as tariffs on aluminium, steel and other goods continue to create uncertainty across North America. Jamieson Greer said tariffs will likely remain in place as long as the United States continues running a trade deficit with major trading partners.

The comments come ahead of a broader USMCA review scheduled for July, with negotiations involving Mexico beginning this week in Mexico City. The current tariff environment is already affecting industries across the region, especially sectors tied to aluminium, steel, autos and manufacturing supply chains.

The United States currently maintains 50 per cent tariffs on Canadian aluminium and steel imports, including products that comply with USMCA rules. In response, Canada has kept retaliatory tariffs on US vehicles as well as around CAD 15.6 billion worth of American steel and aluminium imports.

Trade groups and industry officials have warned that the tariff measures are increasing costs throughout the integrated North American supply chain. Matthew Holmes said tariffs on aluminium, steel and automobiles are creating uncertainty for businesses making investment and hiring decisions.

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The report also noted that American consumers are increasingly bearing the cost of tariffs.

According to estimates from the Tax Foundation, US tariffs could raise average consumer costs by around USD 700 this year. Research from the Federal Reserve Bank of New York also suggested that American consumers absorbed nearly 90 per cent of tariff-related costs in 2025.

Meanwhile, the Trump administration continues to defend tariffs as an important negotiating tool tied to manufacturing and trade policy goals. The administration is reportedly looking for stricter rules of origin under USMCA to increase the amount of North American content used in industrial goods.

Officials are also seeking closer tariff alignment against imports from countries outside US free trade agreements, particularly in Asia. The report said additional tariff measures could emerge later this year under Section 301 trade powers once existing Section 122 tariffs expire in July.

Analysts warned that ongoing uncertainty around tariffs and trade rules could continue affecting investment decisions and supply-chain planning across the region. 

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