Canada-U.S. Trade Update: New Risks and Support for Canadian Businesses

Toronto, ON – October 2, 2026

The United States has taken a tougher position on CUSMA, new tariffs are affecting Canadian exports, Stelco has announced significant changes to its Hamilton operations, and both Canada and the United States are introducing measures that could have a direct impact on Canadian businesses.

What is happening with CUSMA?

The first formal CUSMA joint review took place on July 1, 2026.

The United States did not agree to renew CUSMA in its current form. U.S. Trade Representative Jamieson Greer has stated that the United States wants to address what it considers shortcomings in the agreement, including trade imbalances and barriers affecting American businesses.

CUSMA has not ended. The agreement remains in force while Canada, the United States and Mexico continue discussions.

What is Canada saying?

Canada’s Minister responsible for Canada-U.S. Trade, Dominic LeBlanc, has emphasized that CUSMA remains in force and that Canada is committed to its renewal.

Canada has stated that it will continue engaging with the United States while defending Canadian workers and industries, including steel, aluminum, automobiles and softwood lumber.

The Canadian government continues to stress the importance of stable and predictable access to the American market.

What are President Trump and the United States saying?

President Trump’s administration continues to take a tougher approach toward Canada.

The United States has criticized Canadian trade and procurement policies and has argued that the existing CUSMA agreement does not provide sufficient benefits to American manufacturers, farmers, workers and businesses.

The United States has also introduced additional trade measures affecting Canadian products.

For Canadian businesses, this means the uncertainty surrounding tariffs and Canada-U.S. trade may continue.

Stelco – a warning for Canadian businesses

The impact is already being felt in Canada.

Stelco announced that it is idling finishing operations at Hamilton Works, potentially affecting up to 500 workers.

The company cited U.S. tariffs, market uncertainty, weaker demand and import pressures.

The Stelco situation demonstrates how quickly international trade disputes can affect Canadian workers, manufacturers and communities.

It also has implications beyond steel. Businesses in manufacturing, construction, transportation and other sectors can be affected through higher costs, changing supply chains and reduced demand.

What is the Government of Canada doing?

The federal government has announced approximately $7.5 billion in new and enhanced measures to assist businesses and workers affected by U.S. tariffs and changing trade conditions.

Measures include:

Regional Tariff Response Initiative – an additional $1.5 billion to help tariff-affected businesses adapt, improve productivity and strengthen their operations.

BDC Pivot to Grow – $500 million in additional financing and liquidity support for affected Canadian businesses.

Canada Strong Diversification Fund – an additional $2 billion to support major projects, diversification and investment.

Rapid Response Supports for Workers and Employers – approximately $3.5 billion in measures including employment supports, training and assistance for affected workers and employers.

The federal government is also placing greater emphasis on Buy Canadian, domestic procurement, Canadian manufacturing and diversifying Canada’s international markets.

What should Canadian businesses be doing?

Businesses should be examining how tariffs and changing Canada-U.S. trade relations could affect their customers, suppliers, costs and future investments.

Companies should also determine whether they qualify for recently announced government programs and whether opportunities exist through Buy Canadian procurement, domestic expansion or diversification into other international markets.

Waiting until your business is directly affected may mean missing important opportunities.

How GTA Strategies can help

GTA Strategies helps Canadian businesses navigate government programs, trade challenges and changing regulations. We can:

• Identify relevant government programs and support;
• Assist with applications and government submissions;
• Bring your concerns to the appropriate government decision-makers;
• Support procurement and Buy Canadian opportunities; and
• Help develop strategies to protect jobs, investment and Canadian operations.

If U.S. tariffs, CUSMA uncertainty or changing government policies are affecting your business, contact us to discuss how we can help.