CUSMA review faces Trump disruption

June 22, 2026

Key points from this story:

• CUSMA has governed trade since 2020
• Replaced 26-year-old NAFTA in 2020
• Enables tariff-free movement of qualifying goods
• Upcoming review likely contentious and disruptive
• Trump is a disruptive force in negotiations
• May be worse for Canada and Mexico

By Calvin Daniels The long-standing agreement basically serves as the economic foundation of North American trade, enabling tariff-free movement of qualifying goods between the three nations. While not without its challenges CUSMA has worked relatively well to smooth trade relations. But that does not mean the upcoming review will be smooth.

In fact, the negotiations are likely to be contentious at best, disruptive for sure, and any deal that is reached might be a shadow of the current deal, and that will all be thanks to the most disruptive force on the continent and probably the world today U.S. president Donald Trump. When it comes to trade Trump might best be described as a 'playground bully' who tosses tariffs like they are dodgeballs, not really caring what damage they do, but relishing in the act of being the meanest kid on the block.

That in itself is bad enough, but Trump is also a short-sighted bully, and he lost his glasses. He really doesn't see - or perhaps more accurately he doesn't care - that in terms of trade tariffs are hurting Americans too. Not surprisingly Trump is already stirring the pot.

According to a repeated Reuters report Trump said recently, "I'd rather not have the agreement, but I may sign it. "We do better as a country if we don't have an agreement." Of course, Trump's track record in terms of business acumen is spotted at best, and looking across any portfolio you wish during this term in the oval office shows presidential decisions which seem to make sense only to Trump.

That said Trump will influence the CUSMA review discussions if not directly at the table, certainly through the rhetoric he will offer in sound bites and social media rants, and that means choppy waters for the three nations to negotiate. It does seem like many American economic sectors to appreciate the benefits of CUSMA and usually big business has influence in most things it takes an interest in, so that suggests more reasonable heads than the president will ultimately win out in the re-negotiation. If that does transpire a version of CUSMA will emerge.

However, it may not be as good a deal for Canada and Mexico as we have today. The issue with the three nation deal from Canadian and Mexican perspectives has always been getting into a trade deal with a giant, and when the giant rolls over they tend to hog the blankets. Now with Trump in the mix he wants not just the blankets but believes if he forces his partners to sleep on the street it will be good for his ego, if not his nation.