US Signals Potential for New Tariffs on Canada Despite USMCA Renewal

Trump Administration Considers Withdrawing from or Altering USMCA Trade Deal

Published on Feb. 25, 2026

Got story updates? Submit your updates here. ›

The future of the USMCA trade agreement is once again under scrutiny as former President Donald Trump reportedly considers withdrawing from the pact or significantly altering its terms. This development, coupled with signals from the current US Trade Representative, Jamieson Greer, suggests Canada may face increased tariffs even with the agreement's renewal.

Why it matters

The potential for increased tariffs and a renegotiated USMCA creates uncertainty for businesses on both sides of the border, particularly in sectors like steel, aluminum, automobiles, lumber, and dairy. This could lead to cost increases and supply chain disruptions for companies in these industries.

The details

Recent statements from US Trade Representative Jamieson Greer indicate the White House isn't prepared to offer tariff concessions to Canada. Greer suggested Canada must accept 'higher tariffs' on its products in exchange for access to US markets, specifically citing the dairy market. This stance represents a potential hardening of the US position, demanding a price for market access – a concept gaining traction within the Canadian government itself.

  • On February 25, 2026, the news was published.
  • Former President Donald Trump is reportedly considering withdrawing from the USMCA trade deal or significantly altering its terms.

The players

Jamieson Greer

The current US Trade Representative.

François-Philippe Champagne

The Canadian Finance Minister, who acknowledged that the US administration views access to the American market as a privilege that comes with a cost.

Dominic LeBlanc

The Canadian Trade Minister, who is expected to travel to Washington in the coming weeks to resume trade discussions.

Mélanie Joly

The Canadian Industry Minister, who has indicated the Canadian government is prepared to address challenges related to automobiles, steel, and aluminum.

Mark Carney

The Canadian Prime Minister, who is scheduled to visit India, Australia, and Japan to explore new commercial opportunities, diversifying Canada's trade portfolio beyond its reliance on the US market.

Got photos? Submit your photos here. ›

What they’re saying

“We must accept higher tariffs on our products in exchange for access to US markets.”

— Jamieson Greer, US Trade Representative (newsy-today.com)

“The US administration views access to the American market as a privilege that comes with a cost.”

— François-Philippe Champagne, Canadian Finance Minister (newsy-today.com)

What’s next

Canadian Trade Minister Dominic LeBlanc is expected to travel to Washington in the coming weeks to resume trade discussions with the US.

The takeaway

The potential for increased tariffs and a renegotiated USMCA creates uncertainty for businesses on both sides of the border, particularly in sectors like steel, aluminum, automobiles, lumber, and dairy. Companies should review their supply chains and explore alternative sourcing options to mitigate the impact of potential trade barriers.