Canada and the United States are set to kick off formal talks to review the United States-Mexico-Canada Agreement (USMCA) in mid-January, according to a statement from Canadian Prime Minister Mark Carney’s office late Thursday.
The announcement follows Carney’s update to provincial leaders regarding the status of trade discussions between Ottawa and Washington. Dominic LeBlanc, Canada’s designated lead for U.S.-Canada trade negotiations, will meet with American officials early in the new year to formally initiate the review process, Carney’s office said.
The USMCA, negotiated by the U.S. President Donald Trump during his first term, includes provisions for renegotiation in 2026, making the upcoming talks the first major step toward that milestone.
The forthcoming negotiations take place as trade tensions between both countries remain. Last October, trade discussions aimed at easing tariffs on certain sectors were halted after the Ontario government aired an anti-tariff advertisement in the U.S., prompting President Trump to suspend talks. Those tensions followed a contentious spring marked by Trump’s controversial call for Canada to become the 51st U.S. state, an idea that fueled further antagonism but has since subsided.
At Thursday’s meeting, Carney informed premiers that Canada was close to securing sectoral tariff relief on products such as steel and aluminum prior to the breakdown of talks. Many critical sectors—including aluminum, steel, automotive, and lumber—continue to bear the economic impact of tariffs.
Carney noted that persistent trade issues highlighted this week by U.S. Trade Representative Jamieson Greer will be central to the 2026 review. Greer stressed that the renegotiation would focus on outstanding U.S. complaints about Canada’s policies on dairy, alcohol, and digital services.
Both Carney and the provincial premiers have agreed to convene in Ottawa at the beginning of next year to further coordinate Canada’s trade strategy.
Canada remains heavily reliant on trade with its southern neighbor, with over 75% of its exports destined for the U.S. On average, nearly CAD 3.6 billion in goods and services cross the border daily. Canada supplies about 60% of U.S. crude oil imports and 85% of its electricity imports, standing as the top export market for 36 American states.
Canada also represents the largest foreign source of U.S. steel, aluminum, and uranium; additionally, its 34 critical minerals and metals have drawn significant interest from the Pentagon, which considers them vital for national security. However, Carney cautioned that U.S. access to Canada’s critical minerals should not be taken for granted.
