U.S. lays out terms for trade deal with Canada

(The Center Square) – U.S. leaders want American products, including whiskey and milk, on Canadian shelves as part of any deal between the neighboring nations. U.S. officials have laid out demands for trade talks with Canada and Mexico, making clear that they won't rubber stamp the existing free trade agreement for the three North American nations without changes. President Donald Trump signed that deal, known as the United States-Mexico-Canada Agreement, or USMCA, in 2020 to replace the North America Free Trade Agreement, or NAFTA. Canada has long been a key U.S. trade partner. In 2024, Canada was the top destination for U.S. exports and the third-largest source of U.S. imports. However, that relationship has changed in Trump's second term. Trump hit trade with Canada with a 35% import duty for goods that don't fall under terms of the USMCA. Those tariffs hit Canada's economy hard. Canadian exports dropped, business investment slowed, and tariff uncertainty continues to drag the natio