Canada and US resume trade talks after months-long pause

March 6, 2026

Canada's trade minister Dominic LeBlanc traveled to Washington for the first senior-level discussions with Trump administration officials since negotiations collapsed last October over an Ontario anti-tariff advertisement. The meetings focus on the mandatory review of the USMCA free trade agreement, which Trump has considered eliminating or replacing with separate bilateral deals, though Canada and Mexico prefer maintaining the current trilateral arrangement. While the USMCA has protected most Canadian trade from broad tariffs, sector-specific duties on steel, aluminum, and automobiles remain active and have already caused significant job losses.

Who is affected

Canadian workers (thousands have lost jobs in the auto sector)
Canadian trade minister Dominic LeBlanc
Trump administration officials and US trade representative Jamieson Greer
Prime Minister Mark Carney
Mexican negotiators and government
Province of Ontario
Japanese car manufacturers operating in Canada (producing 70% of Canadian-made vehicles)
Indian, Australian, and Japanese governments and officials
The automotive industry across Canada, US, and Mexico

What action is being taken

LeBlanc is meeting with US trade representative Jamieson Greer to discuss the USMCA
US and Mexican negotiators are holding bilateral discussions over the joint review starting later in March
Carney is wrapping up a tour of the Indo-Pacific with meetings in India, Australia, and Japan
Trump is imposing tariffs on Canada, including a 10% worldwide duty under Section 122 and sector-specific tariffs on steel, aluminum, and automobiles

Why it matters

This represents a critical juncture for North American trade relations, as the potential dissolution or restructuring of the USMCA would fundamentally alter economic arrangements that have governed trade between these countries for years. The automotive industry is particularly vulnerable due to deeply integrated cross-border supply chains where individual vehicles cross borders multiple times during manufacturing. The outcome will determine whether Canada can maintain preferential trade access to its largest export market or must accelerate economic diversification efforts toward Asia-Pacific partners. The situation has already caused measurable economic harm through job losses and threatens Japan's continued investment in Canada's automotive sector.

What's next

US and Mexican negotiators will hold bilateral discussions over the joint review starting later in March
Canada and India agreed to fast-track talks on a free trade deal
Both Canadian and US officials have indicated that some baseline tariffs will likely remain regardless of the USMCA review outcome

Read full article from source: BBC