Trump threatens to end CUSMA; Carney says negotiations will proceed

Prime Minister Mark Carney on Thursday said it's "no secret" U.S. President Donald Trump dislikes the Canada-U.S.-Mexico Agreement (CUSMA) while assuring Canadians the trade pact will remain in place — at least in the near term.

Carney was responding to Trump's Wednesday comments that he would prefer CUSMA be "terminated" rather than extended another 16 years or subject to annual reviews. July 1 marks the formal start of talks among all three countries on the agreement's future.

Speaking to reporters in Vancouver, Carney cited recent remarks from U.S. Trade Representative Jamieson Greer stating that "the underlying structure of CUSMA" is solid and will remain intact during negotiations. "There's always been the opportunity for any of the parties to cancel it with six months' notice," Carney said. "But there are specific things that we can work together on."

One focus is Canada's forestry sector, which faces punishing U.S. tariffs and anti-dumping duties. Carney and B.C. Premier David Eby announced a joint forest product strategy aimed at boosting non-U.S. exports while pressing Americans to reinvest in Canadian materials.

"To see the Americans increasing their imports of lumber from Russia instead of from British Columbia and Canada doesn't make any sense to us at all," Eby said.

Carney said he spoke with Trump about "commercial aspects" of CUSMA at the G7 summit in France this week. Canada's Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette also met with Greer at the summit and agreed to reconnect soon.

Trump said Wednesday he might ultimately sign a renewal or extension of CUSMA, but stated the U.S. would "do better as a country when we don't have an agreement."