On August 1st, the agreement deadline between Canada and the United States came and went without a deal. For Manitoba’s business community, this was a critical date — not just for the sectors directly affected by tariffs, but for every business that relies on the stability and predictability of our cross-border trade relationship.
CUSMA: A Strong Foundation, But Not Without Gaps
Our existing Canada–United States–Mexico Agreement (CUSMA) remains one of the most comprehensive trade agreements in the world. Most goods traded between Canada and the U.S. are tariff-free, thanks to decades of work to integrate our economies and streamline the movement of goods. This zero-tariff environment is the backbone of Canada’s supply chains, where products cross the border multiple times before becoming a final, sellable product.
However, CUSMA isn’t perfect. Certain sectors — including agriculture, manufacturing, and steel and aluminum — remain exposed to tariffs. For these, the stakes are high in the current negotiations. While maintaining tariff-free trade is the goal, we must also be realistic: global trade trends tell us we may not achieve 0% tariffs across the board. The priority must be securing the best possible deal for the sectors that remain unprotected by CUSMA.
The Cost of Uncertainty
Despite our deeply integrated and longstanding trade relationship with the United States, the uncertainty over the last few months surrounding trade has been crippling for Manitoba businesses. Whether impacted directly by tariffs or not, businesses just don’t know what might be coming around the corner, and the situation has become untenable for many.
Several larger Manitoba companies have shared with us the ongoing tariff threats are creating serious financial challenges for their operations — on both sides of the border. Investments are being delayed, hiring plans are on hold, and expansion opportunities are being shelved. When businesses can’t plan, they can’t grow. And when they can’t grow, our economy stalls.
Our economies are too deeply integrated for prolonged disruption to be acceptable. This is why finalizing an agreement is so important. That said, we must resist the temptation to take the fastest route to the finish line.
According to Canadian Chamber of Commerce President and CEO Candace Laing, “the federal government is right to prioritize a strong, future-focused deal over a rushed one. A little more time now can deliver lasting benefits for an integrated North American economy — and that’s well worth the wait.”
The Road Ahead: CUSMA Review in 2026
Regardless of how the current negotiations unfold, we know that CUSMA includes a mandatory joint review by Canada, the United States, and Mexico six years after it entered into force on July 1, 2020. This review will begin in 2026, with public consultations starting in fall 2025.
Manitoba’s business community has been clear: the number one priority is to protect CUSMA and preserve zero-tariff trade wherever possible. For those sectors not covered by CUSMA, our goal must be to secure the most competitive terms we can. This is vital to the health of our integrated supply chains and to ensuring Manitoba remains a competitive place to do business.
Our Message to Manitoba Businesses
Manitoba businesses urgently need certainty. A stable trade environment is essential for investment, job creation, and economic growth. While we must work to conclude the current negotiations quickly, speed cannot come at the expense of quality. We owe it to Manitobans to secure the best deal possible — one that positions our province for long-term prosperity in the North American market.
