New Tariffs & CUSMA Trade Talks – May 23

Essential Strategies for Canadian Businesses

Toronto, ON – May 23, 2026

We are writing to update you on recent developments in international trade and policy that may impact your operations. Below are key headlines and actionable insights to help your business navigate the current environment:

Key Trade and Policy Headlines

CUSMA Negotiations

• Ongoing tensions and negotiations between Canada, the U.S., and Mexico are affecting cross-border trade. The need to address tough regulations, especially those impacting the auto sector (UAW rules), remains essential to ensure fair and predictable trade.
• Delays in resolving these issues have led to uncertainty for exporters and importers, with some sectors facing new tariffs (e.g., mushroom tariffs).

Global Trade Talks

• EU-US and Mexico-EU trade discussions continue, with potential implications for market access and regulatory alignment.
• USA-India trade relations are also evolving, which could affect the supply chain and export opportunities.

Canadian Policy and Economic Updates

• New Canadian streaming laws may impact digital content providers and related businesses.
• Alberta’s pipeline projects and referendum outcomes could influence energy sector investments and logistics.
• The Pentagon’s suspension of the Canadian defence board may affect defence industry contracts.
• The Bank of Canada has issued warnings about economic risks and dollar volatility, while stock dividends have seen a downturn, signalling broader market uncertainty.

Infrastructure and Cross-Border Projects

• Progress on the Gordie Howe International Bridge is expected to improve trade flows between Canada and the U.S. once completed.

Leadership and Diplomatic Relations

• Relations between key figures such as Mark Carney and former President Trump continue to shape the tone of negotiations and economic policy.

Announcements and Support for Businesses

Tariff Relief and Advocacy: We are actively engaging with government and industry partners to advocate for relief measures for businesses affected by tariffs and delayed negotiations. Please reach out if your business is experiencing specific challenges.

Strategic Guidance: The Greater Toronto Area (GTA) business community is encouraged to leverage local networks and resources to adapt supply chains, explore alternative markets, and stay informed about regulatory changes.

Risk Management: Monitor currency fluctuations and review financial strategies in light of Bank of Canada warnings and market volatility.

Regulatory Compliance: Stay updated on new laws and sector-specific regulations, especially in digital media, automotive, and agriculture.

We at GTA Strategies will continue to provide timely updates and support.