U.S. trade officials are pressing hard for Canada to open its markets to American products such as whiskey and milk as part of planned renegotiations of the United States‑Mexico‑Canada Agreement (USMCA). The move comes amid growing frustration in Washington that the current trade pact has not delivered on critical American economic goals, especially for manufacturing and job growth.
President Donald Trump signed the USMCA in 2020 to replace the North American Free Trade Agreement (NAFTA), and Canada has long been one of the United States’ most important trade partners. In 2024, Canada was the top destination for U.S. exports and the third‑largest source of U.S. imports. However, trade relations have shifted in Trump’s second term, particularly after the administration imposed a 35% import duty on Canadian goods that don’t qualify under the USMCA.
Those tariffs have had serious consequences for Canada’s economy, contributing to a drop in exports, slower business investment, and prolonged uncertainty, according to a recent International Monetary Fund report. As lawmakers and trade officials prepare for formal discussions next year involving the U.S., Canada and Mexico, U.S. Trade Representative Jamieson Greer told Congress that improvements are needed.
Greer said the USMCA has been “successful to a certain degree” but acknowledged it has fallen short of fully strengthening U.S. manufacturing and creating high‑quality jobs. In his testimony, he highlighted several Canadian policies the U.S. wants changed, including dairy market restrictions that limit American farmers’ access, provincial bans on American spirits that were enacted in retaliation to U.S. tariffs, and an online streaming law that U.S. officials say harms American tech companies.
Greer also pointed to what he called “discriminatory procurement measures” in provinces like Ontario, Quebec and British Columbia, as well as burdensome customs registration requirements and energy distribution issues affecting Montana providers in Alberta. These concerns form part of the U.S. agenda as negotiations loom.
In response, Canadian leaders are preparing to defend their economic interests. Prime Minister Mark Carney told provincial and territorial leaders that Ottawa will seek the best possible outcome for Canada in upcoming talks. Meanwhile, Canada has also been pursuing trade deals with other countries to reduce its reliance on U.S. markets amid ongoing tariff disputes.
U.S. officials signal that Canada must make meaningful concessions if the USMCA is to remain a viable cornerstone of North American trade.
