Canada may have run out of time to preserve the Canada-United States-Mexico Agreement (CUSMA) from a potential rewrite or termination by U.S. President Donald Trump, according to National Post Washington correspondent Tracy Moran. In the latest episode of the Full Comment podcast, Moran told host Brian Lilley that there is a growing sentiment in Washington that Prime Minister Mark Carney does not genuinely seek trade peace with the United States.
Carney's Strategy Backfires
Moran explained that Carney's "waiting game" approach has exhausted its runway. Trade talks have stalled, and there is insufficient time remaining to avert the July 1 deadline, when Trump gains the authority to revise or even terminate the trilateral trade pact. Compounding the issue, Carney has reportedly irritated the Trump camp through repeated provocations, while American public opinion toward Canada has soured.
Preparing for Punitive Tariffs
According to Moran, the White House is now preparing tariffs that could be far more severe than previous measures. Unlike earlier rounds, these tariffs may include no exemptions for goods covered under CUSMA, striking at the heart of Canadian exports. The podcast, recorded on May 14, 2026, underscores the urgency of the situation as the deadline approaches.
Moran's analysis paints a bleak picture for Canadian trade relations, suggesting that diplomatic missteps and a lack of timely action have left Ottawa with few options to prevent a damaging trade conflict.
