CUSMA provides critical support for the economic prosperity of the U.S. and Canada 🚀

2025-10-01 17:43:55

The global trade environment is currently very turbulent. CUSMA has become a stabilizing anchor for the North American economy. It seems that this Canada-United States-Mexico Agreement plays an indispensable role. RBC economists analyze that existing tariffs do affect specific products. Steel, aluminum, and copper are all impacted. Automotive products with non-U.S. content are as well. However, the origin rules exemptions of CUSMA are crucial. As a result, most Canadian exports can pass through tax-free. This point seems to be significant.

Take a look at the figures for the first half of 2025. The trade deficit of the United States with Canada reached 33.371 billion USD. The numbers are huge. This reflects the extent of the economic entanglement between the two countries. The value of imports from Canada to the United States reached 20.324 billion USD. The export value was 16.952 billion USD.🔄

Canadian producers need CUSMA exemptions. Exporters do too. Negotiations for the extension of the protocol will begin next year. This negotiation is a bit delicate. It will determine whether CUSMA will be extended beyond 2036. The future of North American trade hinges on this battle. U.S. trade policy? Hard to predict. Headache-inducing. However, experts remain optimistic. They believe CUSMA should be able to stay intact. Let's hope so. 💼

Canada is currently facing multiple tariff pressures. The United States imposes a 50% tariff on steel and aluminum. The tax rate on energy and potash is 10%. What about other non-compliant exports? 25%. Trade friction has caused a chain reaction. The supply chain has been disrupted. Investment plans have been shelved. Fortunately, the CUSMA framework is still there. It remains a regional economic stabilizer. In some ways, irreplaceable. 🌉

The relationship between the US and Canada is not just about buying and selling goods. There is also security cooperation and defense collaboration. These elements together maintain the prosperity of North America. They support regional competitiveness. None of them can be lacking.🛡️

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