Carney Says U.S. Trade Talks Made Progress as July 1 CUSMA Review Nears

Q: U.S. tariffs now target a product's full value, not just its metal. How does this hidden increase threaten Canadian manufacturers?

It threatens Canadian manufacturers by quietly raising the real tariff bill far above what the headline rate suggests, making many exports to the U.S. suddenly less competitive. The key change is that U.S. Section 232 tariffs on many steel-, aluminum- and copper-containing “derivative” goods are now assessed on the product’s full customs value, not just the value of the metal inside it. That means the duty is charged not only on raw metal, but also on the value added by Canadian processing, engineering, assembly, labor and other components. In practice, a nominally lower tariff can still cost more. A 25% tariff on the full value of a finished machine part, trailer, appliance or industrial component can exceed a 50% tariff applied only to its metal content. Trade experts have warned this will increase the overall burden for many products, especially higher-value manufactured goods. That is particularly damaging for Canada because its manufacturers are deeply tied into U.S.-bound supply chains in steel, aluminum, auto parts, machinery and equipment. The new method squeezes margins, raises landed costs for U.S. buyers, and can push orders toward American suppliers or other sources. It also punishes firms that add more value in Canada, because the more processing they do, the larger the tariff base becomes. The result is a hidden escalation: not just pressure on raw metal exports, but a broader threat to downstream Canadian manufacturing, investment and jobs.

3 articles · Updated · CBC Sports · Jun 4

Mark Carney said Canada’s team made “some progress” in Washington this week, but warned “lots more” is needed to secure a broader trade agreement with the United States.
More than two hours of briefings from Trade Minister Dominic LeBlanc and negotiator Janice Charette suggested talks are moving “in the right direction,” advisory member Flavio Volpe said, with the White House appearing to want solutions on bilateral irritants.
July 1 will start the review of CUSMA, but Volpe said the date is not a hard deadline and the pact would stay in force even if the three countries do not immediately agree to renew it for 16 years.
50% U.S. Section 232 tariffs on Canadian steel and aluminum remain Canada’s biggest sticking point, business leaders said, with steel shipments to the U.S. down 60% last year.
Ottawa also moved to review a CRTC decision increasing contributions from U.S. streamers, as Canada tries to ease trade irritants ranging from alcohol access to digital-content rules in an unpredictable Trump trade environment.

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CBC Sports4d ago

Mark Carney Reports Progress in U.S. Trade Talks, More Work Needed on CUSMA and Irritants

Yahoo News Canada4d ago

Carney says more work to do on U.S. trade talks after negotiators return from Washington - Yahoo News Canada

YouTube4d ago

Slow progress is progress': Quebec's CUSMA review envoy | Power & Politics - YouTube

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U.S. tariffs now target a product's full value, not just its metal. How does this hidden increase threaten Canadian manufacturers?

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High-Stakes USMCA Review 2026: North America’s Economic Future at a Crossroads

Overview

The July 2026 review of the United States–Mexico–Canada Agreement (USMCA) marks a pivotal moment for North American trade. Far from a routine check, this high-stakes negotiation will test the resolve of all three countries. The U.S. is expected to seek additional concessions from Canada and Mexico, using the review to address not only trade disputes but also broader issues like migration and security. Both Canada and Mexico are approaching the talks with caution, already discussing tariff relief to ease tensions and limit economic risks. This complex environment highlights the strategic importance of the upcoming review for the region’s future.

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