Canada and the US to launch formal talks to review free trade agreement in January

Published: Friday, December 19, 2025 at 8:28 am

Canada and U.S. to Begin Free Trade Talks in January

TORONTO – Canada and the United States are set to begin formal discussions in mid-January to review their free trade agreement, according to a statement from the office of Canadian Prime Minister Mark Carney. The talks will involve Dominic LeBlanc, Canada's point person for U.S.-Canada trade relations, and their U.S. counterparts.

The United States-Mexico-Canada Agreement (USMCA), the trade pact currently in place, is scheduled for review in 2026. The agreement, negotiated by former U.S. President Donald Trump, includes a clause that allows for potential renegotiation.

Prime Minister Carney updated provincial leaders on the upcoming trade talks during a meeting on Thursday. Canada is highly reliant on trade, with over 75% of its exports going to the United States. While most exports are currently exempt under USMCA, recent trade tensions have emerged.

In October, trade talks were briefly halted after an advertisement by the Ontario provincial government regarding tariffs. Prior to that, there was disagreement over the idea of Canada becoming a U.S. state.

Carney indicated that Canada and the U.S. were close to an agreement on sectoral tariff relief in areas like steel and aluminum before the talks were paused. Tariffs are impacting certain sectors of the Canadian economy, including aluminum, steel, auto, and lumber.

U.S. Trade Representative Jamieson Greer has identified concerns about Canadian policies on dairy products, alcohol, and digital services as key issues for the upcoming review. The review will be a broader discussion about continental trade.

The Prime Minister and provincial leaders plan to meet in person in Ottawa early in the new year. The economic ties between the two nations are significant, with nearly $3.6 billion Canadian worth of goods and services crossing the border daily. Canada is the top export destination for 36 U.S. states. Canada supplies a substantial portion of U.S. imports, including crude oil, electricity, steel, aluminum, and uranium. Canada also possesses 34 critical minerals and metals that the Pentagon is interested in for national security. Carney noted that U.S. access to these critical minerals is not guaranteed and is part of a larger discussion about Canada's global trade relationships.

BNN's Perspective: The upcoming trade talks between Canada and the U.S. are crucial for both economies. While disagreements and tensions are inevitable in any trade relationship, a constructive dialogue is essential to ensure a mutually beneficial outcome. Finding common ground on key issues like tariffs and access to resources will be vital for maintaining a strong and stable trading partnership.

Keywords: Canada, United States, trade, USMCA, free trade agreement, tariffs, exports, imports, Mark Carney, Dominic LeBlanc, economy, steel, aluminum, critical minerals, review, trade talks

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