Despite President Trump imposing 35% tariffs on Canadian goods and 25% on Mexican goods, the USMCA trade agreement largely shields most imports. Canada reports that 95% of its exports are unaffected, with energy exports entirely exempt. Mexico similarly benefits, with over 84% of its trade unaffected. While some sectors like autos and steel face tariffs, the impact is limited by the USMCA exemptions. However, the USMCA is up for review next year, creating uncertainty for both Canada and Mexico, who heavily rely on US exports.

Prepared by Christopher Adams and reviewed by editorial team.