US, Canada to Enter Trade Talks in Mid-January, Carney Says
USMCA Up for Review in 2026
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TORONTO — Canada and the U.S. will launch formal discussions to review their free trade agreement in mid-January, the office of Canadian Prime MinisterMark Carneysaid.
The prime minister confirmed to provincial leaders that Dominic LeBlanc, the country’s point person for U.S.-Canada trade relations, “will meet with U.S. counterparts in mid-January to launch formal discussions," Carney’s office said in a statement late Dec. 18.
The United States-Mexico-Canada trade pact, or USMCA, isup for reviewin 2026. U.S. President Donald Trump negotiated the deal in his first term and included a clause to possibly renegotiate the deal in 2026.
Carney met with the leaders of Canada’s provinces on Dec. 18 to give them an update on trade talks with the U.S.
Canada is one of the most trade-dependent countries in the world, and more than 75% of Canada’s exports go to the country's southern neighbor. But most exports to the U.S.are currently exempted by USMCA.
READ MORE:Sector Deals With Canada ‘Unlikely’ as USMCA Talks Loom
Trump cut off trade talks to reduce tariffs on certain sectors with Carney in October after the Ontario provincial government ranan anti-tariff advertisementin the U.S. That followed a spring of acrimony, since abated, over Trump’s insistence that Canada should becomethe 51st U.S. state.
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Carney said earlier Dec. 18 that Canada and the U.S. were close to an agreement at the time on sectoral tariff relief in multiple areas, including steel and aluminum. Tariffs aretaking a toll on certain sectorsof Canada's economy, particularly aluminum, steel, auto and lumber.
Carney also said trade irritants flagged this week by U.S. Trade Representative Jamieson Greer are elements of a “much bigger discussion” about continental trade. Greer said a coming review of the Canada-U.S.-Mexico trade deal will hinge on resolving U.S. concerns about Canadian policies on dairy products, alcohol and digital services.
Carney and the provincial premiers agreed to meet in person in Ottawa early in the new year.
Canada is the top export destination for 36 U.S. states. Nearly C$3.6 billion ($2.7 billion) worth of goods and services cross the border each day.
About 60% of U.S. crude oil imports are from Canada, as are 85% of U.S. electricity imports.
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Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing in for national security.
Carney said U.S. access to Canada’s critical minerals is not a certainty.
“It’s a potential opportunity for the United States, but it’s not an assured opportunity for the United States. It’s part of a bigger discussion in terms of our trading relationship, because we have other partners around the world, in Europe for example, who are very interested in participating,” Carney said earlier Dec. 18.
