If the Canada-U.S.-Mexico free trade deal, also known as CUSMA, breaks down, it would lead to more than 100,000 job losses in Canada and more than twice that in the United States, a new report by an industry group is warning.
In July, Washington said it won’t renew the deal, known as USMCA in the U.S., in its current form. That means the trade deal must be reviewed annually, adding to the volatility and economic uncertainty facing businesses. At the same time, the clock is ticking ahead of a fresh round of U.S. tariffs.
U.S. President Donald Trump has vowed to hit Canada with new sweeping 50 per cent tariffs on a wide range of goods, which are set to land on Aug. 19.
A lot is riding on the deal being renewed, a new report by the Canadian American Business Council warns.
“Successful renegotiation of USMCA would create an additional 137,000 American jobs and 98,000 Canadian jobs in 2027 relative to the status quo,” the report reads.
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It adds, however, that a breakdown of the deal would be disastrous for jobs on both sides of the border.
“By contrast, the breakdown of USMCA would be accompanied by 214,000 and 102,000 fewer jobs, respectively,” it adds.
Businesses on both sides of the border are looking for predictability, said Beth Burke, CEO of the Canadian American Business Council.
“The choices made today will determine North America’s economic competitiveness for decades to come,” Burke said in a statement.
Canada-U.S. Trade Minister Dominic LeBlanc is in Washington this week, joining Canada’s chief negotiator Janice Charette in looking to hammer out a trade deal with the U.S.
LeBlanc posted on X that he and Charette had met with U.S. Trade Representative Jamieson Greer on Tuesday, marking his third known sit-down with his American counterpart since Trump’s tariff threat.
“Discussions remain ongoing, and we continue to engage at the negotiation table to firmly advance and defend Canadian interests,” LeBlanc wrote.
Trump’s decision to impose 50 per cent tariffs on Canadian goods was in response to what the U.S. calls “discriminatory” measures.
Trump signed three executive orders, each one using a different justification for the new tariff: the provincial and territorial boycotts on American alcohol products, Canada’s retaliatory tariffs on U.S.-made vehicles and auto parts, and quotas on American dairy imports under Canada’s supply management system.
In early 2025, several Canadian provinces removed U.S. alcohol from their shelves in response to Trump’s trade war and threats to make Canada the “51st state.”
—With files from Global’s Sean Boynton
Leblanc = Leblank. To many French politicians.
maybe the liberal government should have prepared for this a few years ago before flooding Canada with immigrants and giving away billions of dollars to every other county BUT Canada
With the USA economy being 10 times the size and much more robust than Canada, 100,000 jobs lost in Canada is much more damaging to our economy than the loss of 200,000 in the USA. Our economy is on life support thanks to 11 years of Trudeau and now Carney’s disastrous management. CUSMA is vital to Canada whereas it is merely useful for the USA. Which is why Trump has us over a barrel in negotiations.
Hey Thomas you must be too young to remember all of January 2025 when Justin prorouged parliament and it was left to Ford as head of the associations of premier to speak to the incoming Trump administration.
Trudeau did that for no other reason but to delay the elvetion and save the LPC
Not impressed by Doug Ford other than making himself look foolish and spilling Crown Royal on the ground what actually positive has he accomplished? I can’t think of one thing.
Was this fake story penned by a Liberal insider?
I am sure many will suggest the US will have it worse than Canada, but that will only due to horrendous arithmetic skills.
Losing 100,000 migrant Indian jobs is a win for real Canadians.
We are told that Canadians are most humorless people in the world, while at the same time, we also have the most clowns in government.
Isn’t Carney vacationing in Italy right now?
As an American I believe in America First. Canada economy, prosperity, and other economic indicators is not a concern of ours. Trump cares about the USA first and foremost.
@Anonymous. Facts matter and the USAs unemployment is much lower than Canadas. American Elbows Up
We have nothing to worry about.
Great “negotiator “ Carney just skipped town and went to Italian holiday.
If this doesn’t work out we can always blame Poliviere
Elbows up is the gayest thing since Richard Simmons.
MAGA traitors don’t like when their cult leader shows he’s a dum dum. They lost tons a jobs. Now more! LOL
What rubbish this article is. Yes, Canada will lose jobs, but they will go to the USA. Another Elbows Up article to further explain their narrative.
USA has 10 times the population meaning per capita it’s 1 million Canadian jobs to 100,000 USA jobs . But USA won’t likely lose any as more companies keep moving there . Elbows up
Tump is bringing lost jobs back to the USA. He is levelling the playing field with tariffs and getting Americans to buy products that don’t have tariffs (products made in the USA). While not good news for Canada, it is great news for Americans looking for work. I never bought anything from Canada as I didn’t like how they didn’t pay their fair share with NATO and North America Defense.
The US wont lose any jobs
What is Doug Fords plan? He was elected to “fight” Trump and protect Ontario jobs. All he has done is lose jobs and irritate the USA. Mr. Crown Royal has been a total embarrassment.
Trump doesn’t want any North American cars destined for the USA to be made in Canada. He has made that very clear. Plus if Honda, Toyota, Nissan lose access to the USA market because of the end of CUSMA, they will relocate to the USA also. There is no point for anyone to make vehicles in Canada if they can acess the USA.
The U.S. has 10x the population so who do you think this will really hurt ?
That’s right,the Land of Elbozos with Flop Flop Carney leading the way
Trump is bringing jobs back to the USA. His job is to protect the interests of the USA. It should not be his concern about Canadian jobs, that is Carney.