U.S. Ambassador to Canada Pete Hoekstra has criticized Canada’s recent retaliation against U.S. tariffs, stating that Ottawa’s moves have effectively “pulled the rug out from USMCA” (CUSMA)—the Canada–United States–Mexico Agreement. He added that by imposing tariffs on goods covered by the free trade deal, Canada is putting the pact’s integrity into question.

Earlier this year, Canada imposed 25% counter-tariffs on C$29.8 billion worth of U.S. imports, including those like orange juice, motorcycles, and appliances that fall under CUSMA protections. The move was framed as a response to escalating U.S. tariffs on Canadian goods.

Why It Matters

• Trade Tensions Intensify: Hoekstra’s remarks highlight growing concern in Washington that Canadian retaliation could erode the trust underpinning the trilateral trade agreement.
• Impact on CUSMA’s Stability: Canada’s counter-measures raise doubts about whether the agreement can withstand such unilateral actions—potentially derailing future trade cooperation.
• Diplomatic Strains Rise: The ambassador’s statement compounds mounting friction between the two nations, with trade already a politically charged issue.

In summary, the ambassador’s remarks underscore the fragility of CUSMA amid escalating tariff battles and suggest a growing risk that one of North America’s cornerstone trade agreements is under strain.