The United States and its northern neighbor Canada plan to resume talks around trade early next year. Canadian Prime Minister Mark Carney made the announcement that the U.S. and Canada would discuss, among other matters, existing free-trade agreements in January 2026, after the holiday season.
Building on earlier halted trade talks and hoping for a USMCA extension
The formal discussions will build on the informal deals and discussions underway for months by President Donald Trump and Prime Minister Carney. The discussions come as the signature U.S.-Canada-Mexico free-trade agreement known as the United States-Mexico-Canada Agreement (MSMCA) is up for renewal in 2026, under a deal struck by Trump and both countries during the first Trump presidency.
Carney is appointing Dominic LeBlanc, the Canadian trade minister, as the point person for the talks, which both countries are hoping will restart stalled discussions following President Trump’s social media post saying that he was ending talks after friction with the Canadian government over a digital tax, criticism of U.S. tariffs, and other issues.
Cautious optimism, but doubt from Canada’s government on an eventual deal
This week, the Canadian government expressed cautious optimism at agreeing to reduce some tariffs on Canadian steel and aluminum products after discussions with the U.S. and its trade representative, Jamieson Greer. That optimism was quickly tempered by comments by Prime Minister Carney doubting a broad trade deal with the U.S., citing wide differences.
For its part, the Canadian government is dangling access to critical minerals such as uranium as a necessary part of any trade deal, saying that the U.S. cannot take such imports from Canada for granted.
U.S. trade and economic demands as part of trade talks
The American government has laid out its demands for any future trade deal. One big area is Canadian dairy exports, where a Canadian supply management system has drawn U.S. criticism for charging U.S. farmers to export dairy products to Canada. Prime Minister Carney has expressed doubt that the dairy market will be part of any trade deal.
Another area outlined is the Online Streaming Act, which was passed by former Prime Minister Justin Trudeau’s government in 2023. Trump views the law and associated penalties as an unfair tax on U.S. media providers including Netflix.
And, of course, quite famously the Canadian government banned liquor stores from selling U.S. liquor products following Trump’s imposing of tariffs on the country earlier this year. The Trump administration wants that ban reversed.
