Canada may need to accept tariffs to support U.S. reshoring, says Trump's trade czar

U.S. Trade Representative Jamieson Greer told CBC that Canada would need to accept some higher tariffs and help reshore American industries to reach a trade arrangement; officials say a mandatory CUSMA review and meetings between Canadian and U.S. trade ministers are expected.

U.S. Trade Representative Jamieson Greer said Canada would need to accept some level of higher tariffs and take steps to help reshore American industries if it seeks a trade arrangement with the United States. His remarks followed President Trump’s State of the Union comments that he remains committed to using tariffs to realign trade. The U.S. Supreme Court recently limited the administration’s prior tariff authority, and the administration has used Section 122 of the Trade Act to impose a worldwide tariff measure. Canadian and U.S. officials say they are in communication ahead of a mandatory CUSMA review and expected meetings between trade ministers. Key points: - Greer said Canada would have to accept some higher tariffs and open markets to certain U.S. industries as part of reshoring discussions. - The U.S. Supreme Court ruled that use of the International Emergency Economic Powers Act (IEEPA) to impose earlier tariffs was not lawful. - The administration issued a tariff action under Section 122 of the 1974 Trade Act after the court decision. - A mandatory review of the Canada-U.S.-Mexico trade agreement (CUSMA) is upcoming and officials expect meetings between trade ministers. Summary: Greer tied potential trade negotiations to Canada accepting higher tariffs and measures to increase U.S. content in supply chains. The Supreme Court ruling changed which legal authorities the U.S. can use for tariffs, and officials report a CUSMA review plus ministerial talks are planned as the next procedural steps.