U.S. President Donald Trump said Tuesday the Canada-United States-Mexico Agreement (CUSMA) on trade is “irrelevant” to him and Americans don’t need Canadian products.
“It expires very shortly and we could have it or not,” Trump said while touring a Ford plant in Michigan. “It wouldn’t matter to me. I think they want it. I don’t really care about it.”
Trump statements have rattled Canada and Mexico ahead of a mandatory review this year of the future of the continental trade pact. The president told reporters that “Canada wants it” but the United States doesn’t need anything from its northern neighbour.
“I don’t even think about USMCA,” he said with a shrug, using the American acronym for the trade agreement. “I want to see Canada and Mexico do well, but the problem is we don’t need their product. You know, we don’t need cars made in Canada. We don’t need cars made in Mexico. We want to make them here. And that’s what’s happening.
“There’s no real advantage to it, it’s irrelevant to me. Canada would love it. Canada wants it. They need it.”
The three countries have started domestic consultations on the review and Dominic LeBlanc, the minister in charge of Canada-U.S. relations, is set to meet with U.S. counterparts in mid-January to launch formal CUSMA talks.
LeBlanc said he had met with aluminum and dairy industry representatives in Montreal on Sunday, as part of his efforts to hear directly from affected sectors ahead of the review.
“Hearing directly from Canadian industries will help us ensure that the CUSMA continues to serve the interests of Canada’s businesses and workers,” he wrote on social media Tuesday before Trump’s comments.
The trade pact has shielded Canada and Mexico from the worst impacts of Trump’s tariffs. The president increased duties on Canada to 35 per cent last August, citing the flow of deadly fentanyl, but those tariffs do not apply to goods compliant with CUSMA.
Canadian industries are still being hammered by Trump’s separate sector-specific tariffs on products like steel, aluminum, automobiles, lumber, copper and cabinets.
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The president remained committed Tuesday to his automobile tariffs, saying he wants cars to be built in the United States, not Canada.
Detroit is famously known as “Motor City” and has served as the headquarters of the Big Three — Ford, General Motors and Stellantis. Before Trump’s tariffs, there was a long history of integration with the Canadian auto industry.
Trump was also asked about raw materials coming in from countries like Canada. “We have a lot of our own raw materials,” he replied.
CUSMA was negotiated during the first Trump administration and served as a stress test for Ottawa. The trade talks were tense at times, but ultimately the pact that replaced the North American Free Trade Agreement was hailed a success in all three countries.
Since his return to the White House last year, Trump has repeatedly questioned the value of CUSMA and has claimed the United States doesn’t need anything from Canada.
Trump previously called the deal “transitional” and said it may have served its purpose during a meeting with Prime Minister Mark Carney at the White House last October.
The CUSMA review essentially sets up a three-way choice for the three partner countries to make in July. They can renew the deal for another 16 years, withdraw from it or signal both non-renewal and non-withdrawal — which would trigger an annual review that keeps negotiations going.
Trump’s public comments signal a longer review — or that the United States could walk away.
U.S. Trade Representative Jamieson Greer has spoken about long-standing trade irritants that will be part of CUSMA negotiations, including the supply management system for dairy products and the alleged subsidization of the softwood lumber sector.
Greer has pointed to other non-tariff barriers like Canada’s Online Streaming Act and Online News Act, as well as the provincial bans on sales of American alcohol that were imposed in response to Trump hitting Canada with a barrage of tariffs.
Greer also said the Trump administration is considering splitting up the three-way pact and negotiating separate deals with Canada and Mexico.
— With files from Catherine Morrison
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