Canada, U.S. remain at odds over trade ahead of CUSMA talks

Added: 2026-06-03

[00:00:01]With a possible Kuzma review just one month away, Mark Carney appeared to extend an olive branch to the US in a speech to business elites.

[00:00:10]>> Canada is far and away America's biggest customer. And an integrated North American market for production, Canada strong will help make America great again.

[00:00:20]>> American Ambassador Pete Hoekstra noting a lot of Americans can get behind that kind of positive message, but with trade negotiations looming, many obstacles Most Canadian provinces still won't let their liquor board stock American alcohol, a retaliation for punishing US tariffs on sectors like steel and aluminum.

[00:00:41]>> I see no sign of it changing soon.

[00:00:43]>> This former CBC journalist, now Manitoba's senior representative to the US, says the White House could escalate with more tariffs.

[00:00:51]>> I was hearing that that was going to come out Memorial Day weekend, last weekend. It hasn't yet, but you know, we're bracing for this.

[00:00:58]>> The US has named through Canadian policies as trade irritants as well, including supply management protections for sectors like dairy and a recently hiked levy on American streaming giants such as Netflix, forcing them to pay more into the creation of Canadian content. And the Pentagon says Canada must soon decide if it will buy more American F-35s to replace its aging fighter jets as Ottawa mulls a Swedish alternative.

[00:01:26]>> We have contractual commitments with Lockheed Martin. We'll make a decision on what the what the full picture looks like when we're ready to make it.

[00:01:34]>> But some are optimistic about the future of the Canada-US relationship.

[00:01:38]>> There are just some certain fundamental drivers of the US-Canada relationship that matter to us. Our geography, our democracy, uh our shared need to build industrial and innovation strength.

[00:01:50]>> Canada-US Relations Minister Dominic LeBlanc has not been in DC since March.

[00:01:55]His office says his next trip is still being finalized.

[00:01:59]>> Hey Raffi, remind us what happens if Canada, the US and Mexico don't agree to a review of Kuzma by July 1st.

[00:02:06]>> If there's no review, there's nothing kick-starting the next round of negotiations for a revised deal. So, the existing agreement should remain in place, but uncertainty could linger for years. Ottawa already considers the tariffs imposed by the US since Trump's return to the White House a trade violation.

[00:02:26]And while there are US-Mexico formal talks, no date has been set for similar discussions with Canada.

[00:02:33]>> Raffi Boudjikanian in Ottawa.