Dairy, whiskey, wine and steel: American industries weigh in on trade pact review

WASHINGTON — American industries ranging from whiskey makers and Wisconsin dairy producers to steel and automobile associations have weighed in on the future of the Canada-U.S.-Mexico Agreement on trade.

The continental trade pact, known as CUSMA, is up for mandatory review next year and the Office of the United States Trade Representative has been collecting input on the changes it should consider.

Since the department began public consultations in September, it received more than 1,500 submissions. While the Trump administration does not have to act on the suggestions, they do provide insight into areas that could become irritants in looming negotiations.

“It is time to double down on the success of the (CUSMA’s) economic integration and competitive benefits derived from duty-free market access,” the North American Equipment Dealers Association said in its submission.

CUSMA has been rattled by U.S. President Donald Trump’s massive tariff agenda but Prime Minister Mark Carney has said the trilateral trade agreement shielded Canada from the worst of the duties.

Trump boosted tariffs on Canada to 35 per cent but those levies do not apply to goods compliant under CUSMA. Canada is also being slammed by Trump’s separate Section 232 tariffs on steel, aluminum, automobiles, copper and lumber.

The Big Three automakers — Ford, General Motors and Stellantis — have been squeezed by tariffs on all sides of the deeply integrated North American industry.

In its submission, Stellantis said under the current tariff regime, CUSMA-compliant vehicles are less competitive than autos coming from other countries.

Ford wrote that all Section 232 tariffs should only apply to countries outside of North America “to preserve the effectiveness of (CUSMA) and the competitiveness of the North American auto industry.”

CUSMA was negotiated during the first Trump administration to replace the North American Free Trade Agreement. The turbulent negotiations were a key test for Ottawa but once the agreement was signed Trump called it the best deal ever.

Trump, however, has lately called CUSMA a “transitional step,” and said it may have served it’s purpose.

Canadian officials had been cycling through Washington looking for a tariff off-ramp before CUSMA negotiations begin in earnest.

Carney steadied the bilateral relationship during a meeting with Trump in the Oval Office in October but trade talks once again blew up when the president became angered at an Ontario-sponsored advertisement quoting former president Ronald Reagan criticizing tariffs.

Many of the submissions to the U.S. Trade Representative urged the administration to restore duty-free trade with Canada and Mexico.

The Can Manufacturers Institute said steel and aluminum tariffs on Canada are making their products more expensive and causing prices in grocery stores to increase.

“No tariffs should be placed on primary aluminum from Canada so that beer, soft drink, food, and aerosol consumers can pay less for their basic consumables,” it said.

The National Association of Manufacturers wrote that since CUSMA came into force, “Mexico and Canada have surpassed China as the U.S.’s top trading partners.”

“Canada and Mexico purchased more than one-third of U.S.-manufactured goods exports in 2024 — more than the next 10 U.S. trading partners combined and nearly six times more than China.”

The submissions also included unexpected impacts of Trump’s tariffs. The American Horse Council said sawdust pelleted bedding — a by-product of the Canadian lumber industry that is not typically produced in the U.S. — had gone from US$7.50 to $10.50.

Not all submissions were in favour of dropping the duties — the United States Steel Corporation said tariffs on that metal should remain indefinitely.

Other industry groups shared support for the trilateral trade pact but gave an array of suggestions changes. Many pointed to longtime trade irritants like Canada’s supply management system and lumber industry.

A new concern was among alcohol companies who were agitated by Canadian provinces removing American products from liquor stores in response to Trump’s tariffs and threats of annexation.

The American Whiskey Association urged the Trump administration to ensure there were provisions in CUSMA “that explicitly prohibit discriminatory practices by provincial liquor boards.”

Others bemoaned Canadian policies like the zero plastic waste agenda and other things they see as bureaucratic bloat.

Wayfair, the home goods retailer, wrote that Canada Border Services Agency is not “optimized for modern e-commerce.” The company also called for Canada’s de minimis exemption — allowing goods to enter without duties — to increase to US$400.

It’s also likely that Canada’s Online Streaming Act will become a significant issue in CUSMA negotiations, as well as Canada’s “cultural industries carveout,” which is currently in the trade agreement.

The Recording Industry Association of America called for the Trump administration to pressure Ottawa to rescind the act, pointing out that Carney paused Canada’s digital services tax due to pressure from the president.

Among aerospace, manufacturing, and other industry groups there was another common theme: critical minerals.

The Aerospace Industries Association told the Trump administration to “leverage (CUSMA) to secure reliable access to mineral commodities that Canada and Mexico have a secure supply of.”

This report by The Canadian Press was first published Nov. 21, 2025.

Kelly Geraldine Malone, The Canadian Press