Canada should start reviewing CUSMA with the U.S. as soon as possible, says former Trump official

Everett Eissenstat, a former economic adviser to U.S. President Donald Trump, recently suggested that Canada should start reviewing the North American free trade deal with the United States sooner rather than later. Eissenstat, who served as deputy director of Trump’s National Economic Council during his first term, emphasized the importance of not delaying the process, stating that it is inevitable and should be engaged promptly.

In a recent interview on Rosemary Barton Live, Eissenstat expressed his belief that Canada should take the initiative to review the Canada-United States-Mexico Agreement (CUSMA) as soon as possible. He highlighted the benefits of being proactive and positioning Canada as a leader in trade negotiations under a new administration. By initiating the review process early on, Canada can set the tone for future trade agreements and establish itself as a key player in shaping economic policies.

The Wall Street Journal recently reported that Trump is using the threat of tariffs on Canadian and Mexican goods to push for an early renegotiation of CUSMA. However, Trump has denied these claims and reiterated his concerns about immigration issues with Canada and Mexico. Despite the conflicting reports, it is evident that a review of the trilateral trade pact is imminent, as it is scheduled for 2026.

As discussions surrounding potential tariffs escalate, Canadian officials have devised a plan to impose immediate tariffs on American goods worth $37 billion in response to any actions taken by the U.S. president. The plan includes provisions for escalating tariffs to $110 billion if necessary. However, there is a debate among provinces regarding the implementation of dollar-for-dollar matching tariffs. While Prime Minister Justin Trudeau supports this approach, Saskatchewan Premier Scott Moe believes it could be detrimental to both Canadians and Americans.

Former Alberta premier Jason Kenney emphasized the importance of maintaining a strong and unified stance in response to potential tariffs. He advocated for considering dollar-for-dollar tariffs as a viable option to demonstrate resolve in the face of trade disputes. Kenney stressed the need for Canadian leadership to project strength and ambiguity in their responses to any provocations from the U.S.

Industry Minister François-Philippe Champagne reiterated the government’s strategy of prevention and preparedness in dealing with trade challenges. He emphasized the importance of presenting a united front and not negotiating against themselves in discussions with the U.S. Champagne underscored the need for Canada to remain steady, confident, and resolute in standing up for its interests in trade negotiations.

In conclusion, the impending review of the North American free trade deal underscores the importance of proactive engagement and strategic planning on Canada’s part. By taking the initiative to review CUSMA early on, Canada can position itself as a key player in shaping future trade agreements and economic policies. As discussions surrounding potential tariffs continue, it is crucial for Canadian leadership to maintain a united front and respond decisively to any trade challenges that may arise.