Canada Proposes 16-Year USMCA Renewal, Parallel Tariff Talks

Canada on June 2, 2026, proposed renewing the United States-Mexico-Canada Agreement (USMCA) for 16 years, while seeking separate negotiations on sectoral tariffs, as trade tensions persist. Minister Dominic LeBlanc sent the letter to U.S. and Mexican counterparts ahead of a meeting with U.S. Trade Representative Jamieson Greer. The letter stressed the joint review should strengthen the pact, adding that addressing tariffs on steel, aluminum and autos was essential. The U.S. previously imposed duties on those sectors, hurting Canada's economy. Businesses have criticized Canada for being slow to initiate the review, which must be officially completed by July 1, 2026. Mexico has engaged more proactively, concluding an initial round of talks on automotive rules of origin and steel trade. If all three nations fail to agree on an extension, the USMCA would shift to annual reviews until 2036. Greer has signaled Canada may need to accept some tariffs to participate in the review, and has called for stricter automotive rules and greater access to Canadian dairy and liquor markets.