Trump keeps carveout under CUSMA in new 10 per cent global tariff – National | Globalnews.ca


The majority of Canadian exports will remain exempted from Donald Trump’s new 10 per cent global levy, as the U.S. president pivots after the Supreme Court dealt a blow to his plans to realign global trade.

Trump keeps carveout under CUSMA in new 10 per cent global tariff – National | Globalnews.ca

A fact sheet from the White House said the latest tariff will not hit goods compliant under the Canada-U.S.-Mexico agreement on trade, known as CUSMA.

The duty will also not be applied on top of sector-specific tariffs like steel, aluminum and automobiles.

Trump signed an executive order Friday to enact the worldwide tariff beginning on Tuesday using Section 122 of the 1974 Trade Act. That duty can only stay in place for 150 days, unless Congress votes to extend it.

“Those members of the Supreme Court who voted against our very acceptable and proper method of TARIFFS should be ashamed of themselves,” Trump posted on social media.

Story continues below advertisement

“Their decision was ridiculous but, now the adjustment process begins, and we will do everything possible to take in even more money than we were taking in before!”


Click to play video: 'Supreme Court strikes down Trump’s global tariffs'


Supreme Court strikes down Trump’s global tariffs


Earlier Friday, the U.S. Supreme Court concluded it was not legal for Trump to use the International Emergency Economic Powers Act, better known as IEEPA, for his “Liberation Day” tariffs and fentanyl-related duties on Canada, Mexico and China.

Trump declared an emergency at the northern border related to the flow of fentanyl in order to use IEEPA to hit Canada with 35 per cent tariffs. Those duties did not apply to goods compliant under CUSMA.

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Get daily National news

Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

In a 6-3 ruling, the court said the U.S. Constitution “very clearly” gives Congress power over taxes and tariffs. Chief Justice John Roberts wrote “the Framers did not vest any part of the taxing power in the Executive Branch.”

Story continues below advertisement

The ruling did not say whether companies hammered by those tariffs should get refunds. As of December, federal data showed US$133 billion had been collected.

The court’s decision “reinforces Canada’s position that the IEEPA tariffs imposed by the United States are unjustified,” said Canada-U.S. Trade Minister Dominic LeBlanc in a post on social media.

“While Canada has the best trade deal with the United States of any trading partner, we recognize that critical work lies ahead to support Canadian businesses and workers who remain affected by Section 232 tariffs on steel, aluminum and automotive sectors,” LeBlanc said.

During a 40-minute press conference Friday afternoon, Trump lashed out at the Supreme Court justices and said the decision was “incorrect.” Trump also denigrated Europe as too “woke” and took aim at Canada, saying the country ripped off the U.S. and stole car plants.


Click to play video: 'Trump ‘disagrees’ with Supreme Court ruling, imposes new 10% global tariff ‘effective immediately’'


Trump ‘disagrees’ with Supreme Court ruling, imposes new 10% global tariff ‘effective immediately’


Trump claimed that Canada said it hoped he would win at the Supreme Court “because if you don’t win you’ll actually be able to charge us, with additional work, higher tariffs.”

Story continues below advertisement

LeBlanc spoke with U.S. Trade Representative Jamieson Greer by phone recently. When asked for comment on Trump’s claim about Canada, LeBlanc’s office referred to his social media statement.

Greer told “Fox News” Friday that while the 10 per cent tariff is in place, the Trump administration will begin investigations of countries under Section 301 of the Trade Act of 1974.

That allows a president to take trade actions if the investigation finds a trading partner’s policies are unreasonable and discriminatory, but it would take months and include a period for public comment.

Friday’s ruling will have little effect on the Canadian economy since most of its exports to the U.S. are shielded by the CUSMA carveout, said CIBC chief economist Avery Shenfeld.

Candace Laing, president and CEO of the Canadian Chamber of Commerce, said it’s “not the last chapter of this never-ending story.” She cautioned that Canada should prepare for “new, blunter mechanisms to be used to reassert trade pressure.”

Trump’s tariffs and threats of annexation have rattled Canada ahead of a mandatory review of the CUSMA trilateral trade pact later this year. Trump has called the trade agreement “irrelevant” and said it may have served its purpose.


Click to play video: 'SCOTUS rules Trump’s tariffs overstepped his authority, but what does that mean for Canada?'


SCOTUS rules Trump’s tariffs overstepped his authority, but what does that mean for Canada?


A successful CUSMA review must see Trump’s separate sectoral tariffs dropped, said Conservative Leader Pierre Poilievre in a social media post.

Story continues below advertisement

Poilievre criticized Prime Minister Mark Carney for not securing a deal with the Trump administration.

“The truth is no one can control what President Trump will say or do and so we must instead focus on what we can control,” Poilievre said. “We must unblock our energy and minerals, unleash our economy, and bolster our military and self-reliance for leverage to fight for tariff-free trade with the U.S.”

The Supreme Court’s decision is a win for U.S. separation of powers and the American and Canadian economies, said George Mason University law professor Ilya Somin, who represented small businesses pushing back on the tariffs.

“But also for the rule of law,” Somin told The Canadian Press. “The rule of law is at odds with a system under which the president can impose any tariffs he wants on any country for any reason at any time.”

—With files from Craig Lord, Kyle Duggan and The Associated Press


&copy 2026 The Canadian Press


Trump’s global tariffs were struck down. Don’t expect price drops: experts – National | Globalnews.ca


While U.S. President Donald Trump’s sweeping global tariffs were struck down by the U.S. Supreme Court on Friday, experts and economists say the decision is unlikely to bring relief for consumers in Canada.

Trump keeps carveout under CUSMA in new 10 per cent global tariff – National | Globalnews.ca

Hours after the court’s decision on his tariffs, Trump said he was imposing another global tariff of 10 per cent under Section 122 of the U.S. Trade Act, which limits tariffs that address trade deficits to 15 per cent and for no longer than 150 days.

The law Trump used to impose the global tariffs that were struck down — the International Emergency Economic Powers Act (IEPPA) — “does not authorize the President to impose tariffs,” Chief Justice John Roberts wrote in the majority opinion.

Economists have pointed out that the impact of the IEEPA tariffs on Canada has been blunted by the exemptions granted to goods traded in compliance with the Canada-U.S.-Mexico Free Trade Agreement (CUSMA).

Story continues below advertisement

According to a report by RBC, around 89 per cent of Canadian exports to the U.S. in December were not charged with tariffs because they’re compliant with rules of origin requirements in CUSMA.

“The ruling will have less impact on Canadian trade than most other countries. Most Canadian exports are already exempt from IEEPA tariffs via an exemption for CUSMA compliant trade,” the RBC report said.


Click to play video: 'Supreme Court strikes down Trump’s global tariffs'


Supreme Court strikes down Trump’s global tariffs


While nearly 90 per cent of the tariffs’ economic burden was borne by U.S. consumers and firms, Canadians have felt the impact of higher prices because of the integrated supply chains between the two countries.

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Get daily National news

Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

For example, beer cans use Canadian aluminum and are made into can sheets in the United States. The metal crosses the border several times before it hits the shelves.

Story continues below advertisement

Friday’s decision does not affect the sectoral tariffs on key Canadian products, like metals, autos and lumber.

“It’s not material at all for our industry in the aluminum sector because we are under a different section, Section 232,” said Jean Simard, president and CEO of the Aluminum Association of Canada.

Before Trump’s tariffs went into effect last year, some businesses acted proactively, said Concordia University economist Moshe Lander.

“Canadian businesses front-loaded a lot of exports into the U.S. to avoid the tariffs,” he said.

This meant many businesses had built up inventory to avoid price increases for their consumers.

Once prices have been raised, its unlikely that they’ll be reversed, said retail analyst Bruce Winder.

“These new prices have been normalized now,” Winder said.

“Most large retailers don’t lower prices. They might use some of that money for share buybacks, dividends or strategically lower prices or promotions if they see the market going that way. But no one at the top wants to lower prices unless you have a strategic reason to do it. It’s not good for sales and earnings,” he added.


Click to play video: 'Trump could scale back aluminum and steel tariffs ahead of midterms: report'


Trump could scale back aluminum and steel tariffs ahead of midterms: report


The real impact may be less so on price tags at stores and more on consumer confidence, said BMO Capital Markets senior economist Erik Johnson.

Story continues below advertisement

“It’s less likely to have implications on the job market and things that feed into decisions consumers make every day about whether to go out and buy a new car or whether to buy a new home or upgrade or downsize — all those big consumer decisions,” he said.

But Canadian businesses will continue to be on shaky ground with the cloud of uncertainty still hanging over the U.S. trading relationship, Lander said.

“The problem is not just the tariffs themselves. It’s these constant reversals on policy. Businesses that make decisions 30 to 50 years out need to have some degree of clarity,” he said.

“What you don’t need is a White House that takes a decision on a Monday, does a 180 on a Tuesday, doubles down on Wednesday, and then backs away from it entirely on Thursday,” he added.


&copy 2026 Global News, a division of Corus Entertainment Inc.


B.C. Premier David Eby to respond to Trump Supreme Court tariff ruling | Globalnews.ca


B.C.’s Premier David Eby is set to speak at 12:45 p.m. PST on Friday to respond to the U.S. Supreme Court ruling on President Donald Trump’s tariffs.

Trump keeps carveout under CUSMA in new 10 per cent global tariff – National | Globalnews.ca

The U.S. Supreme Court on Friday ruled that Trump overstepped his presidential authority by imposing tariffs on Canada, Mexico and other countries under emergency powers, striking down a central economic and diplomatic strategy that has upended global trade.

A majority of the justices sided with lower courts that had found Trump improperly used tariffs to respond to national emergencies he declared over fentanyl trafficking in North America and international trade deficits, the latter of which led to so-called “reciprocal” tariffs against dozens of nations.

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Get daily National news

Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

The law Trump used to exercise that authority, the International Emergency Economic Powers Act (IEPPA), “does not authorize the President to impose tariffs,” Chief Justice John Roberts wrote in the majority opinion.

Story continues below advertisement


Click to play video: 'B.C. reaction to tariff deal with China'


B.C. reaction to tariff deal with China


Eby has always been very vocal against Trump’s tariffs and the impact on B.C.’s economy.

“We are not going to accept these continual threats, this continued uncertainty. We are going to stand up for Canadians. This is unacceptable,” Eby said last March.

Trump can still impose tariffs under other authorities, including a national security clause known as Section 232 that targets specific industries rather than countries. Those tariffs on goods, including steel, lumber and automobiles, remain in place.

This story will be updated following Eby’s press conference on Friday afternoon.

— With files from Global News’ Sean Boynton and Ariel Rabinovitch


&copy 2026 Global News, a division of Corus Entertainment Inc.


LeBlanc says he’ll meet with Trump’s trade rep to talk about CUSMA review – National | Globalnews.ca


The minister in charge of Canada-U.S. trade says he will be sitting down with U.S. President Donald Trump’s trade czar in the coming weeks to discuss the looming review of the Canada-U.S.-Mexico Agreement.

Trump keeps carveout under CUSMA in new 10 per cent global tariff – National | Globalnews.ca

Dominic LeBlanc says he spoke with U.S. Trade Representative Jamieson Greer on the phone after his American counterpart last week said Canadians had barriers that made it difficult to have bilateral trade talks.

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Get daily National news

Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

The Trump administration has been causing uncertainty about the trilateral trade pact, known as CUSMA, ahead of a mandatory review taking place this year.

Trump has mused about leaving the agreement and Greer has talked about negotiating separate bilateral trade pacts with America’s closest neighbours.

LeBlanc, who is leading a large trade mission to Mexico this week, says Ottawa and their Mexican counterparts are in agreement that a North American deal involving all three countries is the best way forward.

Story continues below advertisement

He says Canada and Mexico do have different trade relationships with the United States but there are many areas of common ground.


&copy 2026 The Canadian Press


Poilievre won’t back MP’s claim Canada throwing anti-U.S. ‘hissy fit’ | Globalnews.ca


Conservative Leader Pierre Poilievre on Tuesday distanced himself from Jamil Jivani’s claim that Canadians are throwing an “anti-American hissy fit” over U.S. President Donald Trump’s tariffs and sovereignty threats, saying the Conservative MP “speaks for himself.”

Trump keeps carveout under CUSMA in new 10 per cent global tariff – National | Globalnews.ca

Jivani travelled to Washington earlier this month to meet with his college friend, Vice President JD Vance, and other Trump administration officials in what he described as an attempt to “build bridges” between Canada and the U.S.

After he returned to Canada, Jivani told U.S. right-wing news site Breitbart that Canadians would be “shooting ourselves in the foot if we continue this anti-America hissy fit” and urged Prime Minister Mark Carney to work with him and the White House on resolving the trade dispute.

Poilievre told reporters in Ottawa he has spoken to Jivani about his trip and subsequent comments.

“My message (to him) is that Canadians are understandably upset about the tariffs and the comments that President Trump has made, and that we need to focus on what we can do here at home,” he said.

Story continues below advertisement

“He speaks for himself, and I speak for the party.”

Jivani represents a central Ontario riding that Poilievre acknowledged has been “disproportionately impacted” by Trump’s auto tariffs. The riding includes parts of Oshawa, home to General Motors’ assembly plant that recently cut a shift and laid off some 500 employees — a move expected to affect upward of a thousand workers across the supply chain.


Click to play video: 'Carney suggests Poilievre remove his ‘fingers from his ears’ when it comes to Canadian auto workers'


Carney suggests Poilievre remove his ‘fingers from his ears’ when it comes to Canadian auto workers


GM has signalled intentions to follow automakers like Stellantis and shift its production to the U.S., a key goal of Trump’s tariff policies.

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

“I think that it’s necessary for all MPs to use all the connections and work that they can in order to overturn the tariffs and protect Canadian jobs,” Poilievre said. “So I encourage all MPs to fight the tariffs and stand up for Canada.”

Story continues below advertisement

Global News reported earlier this month that some member of the Conservative caucus were upset with what they viewed as Jivani’s “freelance” diplomacy with the Trump administration.

It’s also not clear if Jivani’s trip was sanctioned by Poilievre’s office, which has not responded to questions about his U.S. travels.

Jivani is not the party’s “shadow minister” for foreign affairs, international trade or Canada-U.S. trade.


Jivani said earlier this month he had “productive” meetings with Trump’s administration. He said on social media that he met with representatives of the White House and U.S. State Department and that the president asked him to pass along a message — to tell Canadians he loves them.

In a video posted to social media, Jivani said he expects criticism from “frothing, elbow-waving anti-American activists” but he thinks Canadians want someone willing to “cut through all the posturing” to deliver results.

He later described his meetings with American officials and lawmakers as “very productive, promising and positive.”

“I’m feeling hopeful and optimistic that we can get something really good done for Canadian workers and businesses,” he said. “Might take some time, but I really believe that the doors are open here.”

That later video came days before Trump threatened to block the opening of the Gordie Howe International Bridge between Ontario and Michigan in a social media post that complained about Canada treating the U.S. unfairly on trade and other issues.

Story continues below advertisement

Ontario Premier Doug Ford told reporters Tuesday he was happy to see Jivani go to the U.S. but that he disagreed with his recent comments.

“I don’t call it a hissy fit,” Ford said. “What I call (it) is making sure that we communicate with the American people.

“No one would even know who Jamil Jivani was unless I hired the guy in my office,” Ford added, referring to the fact that Jivani once worked as an adviser to his government. “I didn’t know him from a hole in the ground.”

—with files from Global’s Alex Boutilier and the Canadian Press

&copy 2026 Global News, a division of Corus Entertainment Inc.


Trump slams Canada as U.S. House passes symbolic vote to end tariffs – National | Globalnews.ca


U.S. President Donald Trump called Canada “among the worst in the World to deal with” as the U.S. House of Representatives voted against his tariffs on America’s northern neighbour — a largely symbolic move that shows some wavering Republican support for the president’s massive trade agenda.

Trump keeps carveout under CUSMA in new 10 per cent global tariff – National | Globalnews.ca

“Canada has taken advantage of the United States on Trade for many years. They are among the worst in the World to deal with, especially as it relates to our Northern Border,” Trump posted on social media Wednesday night as results of the vote became clear. “TARIFFS make a WIN for us, EASY. Republicans must keep it that way!”

Six Republicans joined Democrats in a bipartisan push against Trump’s so-called fentanyl emergency at the U.S.-Canada border, which the president used as justification for economywide tariffs against America’s northern neighbour last year.

While Wednesday’s motion passed, it did not get the two-thirds majority it would need to become veto-proof. When it lands on Trump’s desk, it is expected to be shut down.

Story continues below advertisement

Canada is also being hammered by separate sector-specific tariffs on industries like steel, aluminum, automobiles and lumber that Trump enacted through a different presidential power.

The bipartisan support does demonstrate Republican uncertainty around Trump’s erratic trade policies directed towards Canada.

Democrat Rep. Gregory Meeks, who introduced the bill, said Canada isn’t a threat.

“Canada is our friend. Canada is our ally,” Meeks said. “Canadians have fought alongside Americans.”


Click to play video: 'Bessent asked if U.S. would drop all tariffs if Canada did the same: ‘Absolutely not’'


Bessent asked if U.S. would drop all tariffs if Canada did the same: ‘Absolutely not’


Trump declared the emergency in order to use the International Economic Emergency Powers Act, also called IEEPA, to hit Canada with 35 per cent tariffs. Those duties do not apply to goods compliant under the Canada-U.S.-Mexico Agreement on trade, known as CUSMA.

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Get daily National news

Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Meeks said U.S. government data shows a minuscule amount of fentanyl is seized at the northern border compared to the border with Mexico.

Story continues below advertisement

In response to Trump’s stated concerns about fentanyl, Ottawa boosted border security measures, with more boots on the ground and drones in the air. Canadian police forces have widely promoted drug seizures in news releases.

During debate in the House earlier Wednesday, Brian Mast, a Republican from Florida, pointed to those drug seizures in Canada and Ottawa’s appointment of a “fentanyl czar” as evidence the problem is real. He also said Canada hasn’t done enough to crack down on drugs.

“Democrats don’t recognize that there is a crisis that it is killing thousands of Americans,” Mast said.


The Senate has voted repeatedly to overturn the fentanyl duties but a procedural rule allowed the House to avoid any votes on Trump’s tariff agenda. That ended Tuesday, when three Republicans joined Democrats to stop the extension of the procedural rule.

While the U.S. Constitution reserves power over taxation and tariffs for Congress, Trump’s duties have so far faced little public resistance from Republican lawmakers, despite concerns shared behind closed doors among traditional GOP free-traders.

“Any Republican, in the House or the Senate, that votes against TARIFFS will seriously suffer the consequences come Election time, and that includes Primaries!” Trump wrote in a separate Truth Social post Wednesday.

“TARIFFS have given us Economic and National Security, and no Republican should be responsible for destroying this privilege.”

Story continues below advertisement

IEEPA has become Trump’s favourite tool to impose or threaten tariffs — but its future is uncertain.

The U.S. Supreme Court is still weighing whether Trump can continue using IEEPA. The conservative-led U.S. Supreme Court appeared skeptical during a hearing on IEEPA in November.

Rep. Adrian Smith, a Republican for Nebraska, said Wednesday’s vote should be delayed until after America’s top court rules on the IEEPA tool. He said Canada is a friend but Trump’s use of duties has pushed Ottawa to have difficult conversations about trade irritants. He cited the example of the digital services tax, which Prime Minister Mark Carney paused to appease the president last year.

Trump’s inconsistent use of tariffs and his claims that Canada should become a U.S. state are hurting American businesses, multiple Democrats told the House. Many also pointed to the president’s Monday social media post threatening to stall the opening of the Gordie Howe International Bridge connecting Ontario to Michigan.


Click to play video: 'Why is Trump threatening to block the Gordie Howe bridge from opening?'


Why is Trump threatening to block the Gordie Howe bridge from opening?


Representatives from Nevada spoke about the drop in tourism and others from Oregon said Canadian alcohol boycotts were devastating the wine industry.

Story continues below advertisement

Rep. Linda Sanchez, a Democrat for California, said claims that Canada is a fentanyl threat are not borne out by facts. She pointed out that CUSMA was negotiated during the first Trump administration and ratified by Congress.

Responsible governments follow the law on trade agreements and don’t negotiate through weird social media tantrums, she said.

“It’s just reckless and frankly, it’s bizarre.”

Trump’s post about Canada was the only comment he made Wednesday about the country, which was grieving Tuesday’s mass shooting in Tumbler Ridge, B.C. that killed eight people and injured about 25 others.

Other world leaders, as well as U.S. Ambassador to Canada Pete Hoekstra, have offered condolences to Canada and Tumbler Ridge in the wake of the tragedy.

—With additional files from Global News

&copy 2026 The Canadian Press


Trump threatens to block opening of Gordie Howe International Bridge | Globalnews.ca


U.S. President Donald Trump said Monday he will block the opening of a new bridge and trade route connecting Ontario and Michigan until the United States is “compensated for everything we have given” Canada.

Trump keeps carveout under CUSMA in new 10 per cent global tariff – National | Globalnews.ca

In a lengthy post on his Truth Social website, Trump called for immediate negotiations over the Gordie Howe International Bridge between Windsor, Ont., and Detroit, Mich., that he said would seek U.S. ownership of “at least one half of this asset.”

He cited Ottawa’s recent trade agreement with China, Canadian tariff quotas for American dairy products, and Ontario’s ban on U.S. alcohol among his irritants with Canada, and that the bridge is the latest example of Canada treating the U.S. “very unfairly for decades.”

“Canada is building a massive bridge between Ontario and Michigan. They own both the Canada and the United States side and, of course, built it with virtually no U.S. content,” Trump wrote. “President Barack Hussein Obama stupidly gave them a waiver so they could get around the BUY AMERICAN Act, and not use any American products, including our Steel.

Story continues below advertisement

“Now, the Canadian Government expects me, as President of the United States, to PERMIT them to just ‘take advantage of America!’ What does the United States of America get — Absolutely NOTHING!”

He later continued: “I will not allow this bridge to open until the United States is fully compensated for everything we have given them, and also, importantly, Canada treats the United States with the Fairness and Respect that we deserve.

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Get daily National news

Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

“We will start negotiations, IMMEDIATELY. With all that we have given them, we should own, perhaps, at least one half of this asset. The revenues generated because of the U.S. Market will be astronomical.”

The Windsor–Detroit Bridge Authority, the Canadian Crown corporation responsible for overseeing the bridge’s construction, said Friday that “major construction” is complete and testing work is underway leading up to this year’s opening.


Click to play video: 'Canada’s newest border crossing links Windsor and Detroit'


Canada’s newest border crossing links Windsor and Detroit


The bridge will serve as a new crossing within the busy Ontario-Michigan trade corridor and aims to ease traffic on the nearby Ambassador Bridge.

Story continues below advertisement

The Canadian government says it is funding the entire project, which will be publicly owned by both Canada and Michigan.

About a third of all trade between the U.S. and Canada occurs between Detroit and Windsor.

Trump’s post is the latest sign of souring relations with Canada since Prime Minister Mark Carney’s widely viewed and praised speech at the World Economic Forum in Davos, Switzerland.


Carney in that speech warned of a “rupture” to the U.S.-led international rules-based order and urged countries to band together to withstand pressure from great powers, a reference to Trump’s global trade wars and attacks on allies.

In response, Trump told the same gathering of political and business leaders that “Canada lives because of the United States” and warned Carney to “remember that.”

Trump has since criticized Canada for reaching a deal with China that eases tariffs on each country’s goods and will allow a certain amount of Chinese EVs to be sold into Canada.

His post Monday repeated his claim that China will “eat Canada alive,” adding the U.S. will “just get the leftovers.”

“The first thing China will do is terminate ALL Ice Hockey being played in Canada, and permanently eliminate The Stanley Cup,” Trump added.

Story continues below advertisement

Carney has repeatedly said his government is not pursuing free trade with China as Trump has claimed, but rather seeking a “strategic partnership” that allows for limited economic cooperation.

The strained relationship comes ahead of this summer’s scheduled review of the Canada-U.S.-Mexico Agreement on free trade.

&copy 2026 Global News, a division of Corus Entertainment Inc.


Laid-off GM workers should get lower taxes on severance, Tories urge | Globalnews.ca


The Opposition Conservatives are calling on the federal Liberal government to reduce taxes on severance packages for laid-off General Motors workers in Ingersoll, Ont.

Trump keeps carveout under CUSMA in new 10 per cent global tariff – National | Globalnews.ca

Conservative Leader Pierre Poilievre penned a letter Sunday, co-signed by labour critic Kyle Seeback and local MP Arpan Khanna, addressed to Finance Minister François-Philippe Champagne calling for an exemption to the withholding taxes that ding severance pay.

In a draft version of the letter seen by The Canadian Press, the Conservatives argue taxes on a big chunk of GM’s lump-sum severance payments could deprive out-of-work employees of “tens of thousands of dollars,” adding “insult to injury.”

The federal Tories said waiting until after tax season to recover funds is not a reasonable solution for workers who recently lost their regular paycheques and still need money for their mortgages and grocery bills.

“These men and women worked hard, played by the rules and built things this country depends on. The least your government can do is stop taking their money at the worst possible moment,” the letter said.

Story continues below advertisement

“That is why I am asking you to use your existing authority to reduce the amount of tax withheld on these payments for workers affected by the GM CAMI layoffs.”

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

The letter comes just ahead of the start of tax-filing season and days after Carney unveiled his new strategy for the automotive sector.

GM announced last year it would end its BrightDrop electric-vehicle production at the CAMI Assembly plant in Ingersoll, citing weaker-than-expected market demand and a challenging regulatory environment in the U.S.

More than a thousand employees have been laid off.


Click to play video: 'Canada and Korea sign MOU on auto manufacturing'


Canada and Korea sign MOU on auto manufacturing


Meanwhile, GM’s Oshawa Assembly is shuttering one of three shifts, laying off some 500 employees in a move expected to affect upward of a thousand workers across the supply chain.

Story continues below advertisement

Unifor, the union representing the GM employees, has accused U.S. President Donald Trump of upending Ontario’s auto sector and hitting the Ingersoll GM plant on multiple fronts. Trump introduced 25 per cent tariffs on non-U.S. auto content and policies that upended the U.S. EV industry.

Prime Minister Mark Carney announced a new automotive industrial strategy last Thursday, which he vowed would “drive investment” in the sector and set a “sovereign path” to reduce auto emissions.

The strategy would remove the EV sales mandate in exchange for stricter auto-emissions standards and re-introduce the EV rebate program.


It comes on the heels of a deal the prime minister made in Beijing, granting a set quota of Chinese EVs into the country at a minimal tariff rate. Carney has also said Ottawa has been in talks with Korean and Chinese investors interested in Canada’s auto sector.

The Conservatives dismissed Carney’s new auto strategy in their letter for being unhelpful to auto-sector workers who have been left reeling as their industry buckles.

“Canadians are still waiting for your government to deliver the trade deal with the United States you promised by July 21 (2025) and a clear plan to protect Canadian jobs,” the Conservative MPs wrote.

“Instead of presenting a serious plan to defend our auto workers, you’ve just announced a rebate that will subsidize American-made EVs.”

Story continues below advertisement

Canada is entering into talks this year over renewing the Canada-United States-Mexico Agreement, as the free-trade pact comes up for review among the signatories.

Carney said Thursday his objective remains getting all tariffs removed, but that is clearly not Trump’s objective, so Canada must “prepare for all possibilities.”

&copy 2026 The Canadian Press