Welcome to Canada Tariff News and Tracker. I'm bringing you the latest on how tariffs are reshaping Canada's trade landscape as we head into 2026.

The past year has been a rollercoaster for Canadian exporters. While President Trump's administration has levied waves of tariffs on different goods throughout 2025, reaching a blanket rate of 35 percent on Canadian goods, a critical exemption has kept the majority of Canadian businesses afloat. According to data from the U.S. Census Bureau, 90 percent of Canadian goods entered the United States tariff-free as of July. This lifeline exists because goods compliant with the Canada-U.S.-Mexico Agreement, or CUSMA, are exempt from those blanket tariffs. The Bank of Canada estimates the effective tariff rate on Canadian exports at just 5.9 percent when accounting for this exemption, though Oxford Economics puts it slightly higher at 6.3 percent.

But here's where things get concerning for listeners. That CUSMA exemption is absolutely at risk in 2026. Trade officials are preparing for a review of the agreement, and experts warn that if this exemption disappears, Canada's economy would face what's being called "longer-term scarring." Tony Stillo, director of Canada economics at Oxford Economics, stated that without the exemption, the economy's size would be lower for several years, probably permanently.

International trade lawyer William Pellerin said the 2026 review was meant to be just that, a review, not a renegotiation. However, the Trump administration has signaled willingness to walk away from CUSMA if the U.S. doesn't secure certain concessions from Canada and Mexico. Pellerin called the loss of the CUSMA exemption a "nuclear option."

In response to this uncertainty, Canada is making a strategic pivot. Ottawa has been aggressively expanding trade ties across Asia. In September 2025, Canada secured a landmark free-trade deal with Indonesia, opening doors in energy, agriculture, and technology. In November, Canada signed a bilateral investment treaty with the United Arab Emirates, complete with an expanded air-services pact. Ottawa is also reviving trade talks with India and has set an ambitious target to finalize a free-trade agreement with the ten-member ASEAN bloc by 2026. This diversification strategy reflects Canada's determination to reduce vulnerability to unilateral U.S. actions and build resilience in an unpredictable trade environment.

As negotiations heat up heading into next year, Canadian listeners should stay alert. The stakes are high, but Canada's proactive approach to finding new trading partners shows determination to weather whatever comes next.

Thank you for tuning in to Canada Tariff News and Tracker. Please subscribe for the latest updates on how tariffs affect your economy and your community.

This has been a Quiet Please production. For more, check out quietplease dot ai.

For more check out https://www.quietperiodplease.com/

Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q

This content was created in partnership and with the help of Artificial Intelligence AI