U.S. keeps tariffs on Canada, Mexico

Published May 27, 2026 by The Daily Scout

- Jamieson Greer said on May 26 the Trump administration will keep tariffs on Canadian and Mexican imports as Washington opens talks to remake USMCA. (whbl.com) - Greer called U.S. trade issues with Canada “significant,” while a separate U.S.-China channel could cover about $30 billion in non-strategic goods. (whbl.com) - By July 1, the United States, Canada and Mexico must renew USMCA or begin the pact’s withdrawal process. (usnews.com)

Why it matters

Jamieson Greer said on Tuesday that the Trump administration will keep tariffs on imports from Canada and Mexico while it renegotiates the U.S.-Mexico-Canada Agreement, rejecting the idea that the North American trade pact will operate as a tariff-free zone during the review. (whbl.com) Greer, the U.S. trade representative, said at a Council on Foreign Relations event in Washington that the United States still has a “giant trade deficit” and “significant” unresolved issues with Canada. A separate U.S.-China track points in a different direction. Reuters reported on May 13 that Washington and Beijing were discussing a joint “Board of Trade” to identify roughly $30 billion of non-sensitive goods that could qualify for tariff reductions without crossing national-security red lines. (usnews.com) ### Why are Canada and Mexico still facing tariffs during a free-trade pact review? Greer said the United States “is going to have tariffs” during the USMCA review, framing them as part of a broader push to reduce trade deficits and raise U.S. content in regional production. Reuters reported that the administration is beginning bilateral negotiations with Mexico while handling Canada separately. (whbl.com) The U.S. position breaks with the idea that USMCA members should trade tariff-free while the pact is under review. Greer said the administration has spent “the past year and a half” telling countries that Washington needs “some level of tariff,” according to Reuters. (usnews.com) ### Why did Greer single out Canada? Greer said U.S. trade issues with Canada are “significant,” a sharper formulation than he used for Mexico in the Reuters report from Washington and Mexico City. The report said the administration sees Canada as being in a “different spot” as the negotiations unfold. (whbl.com) Canada and Mexico are both covered by USMCA, but Reuters reported that the United States was moving ahead with talks in a way that excluded Canada from the immediate Mexico track. That split matters because it suggests Washington is not treating the two USMCA partners as a single bloc in this round of negotiations. (finance.yahoo.com) ### What is the China “Board of Trade” supposed to do? Reuters reported on May 13 that the proposed U.S.-China “Board of Trade” would identify about $30 billion worth of goods on each side that do not carry national-security sensitivities. Those products could become candidates for lower tariffs or tariff removal under a managed-trade mechanism. (whbl.com) Scott Bessent, the U.S. Treasury secretary, said the United States planned to discuss forming such a board with China, according to a Yahoo Finance report citing Reuters. The mechanism was described as a way to separate strategic goods from lower-risk commercial trade. (whbl.com) ### How do the two tracks fit together? The policy, as described in the Reuters reports, leaves tariffs in place for U.S. neighbors while exploring a narrow carve-out for selected Chinese goods. The Canada-Mexico decision applies to broad North American trade flows during the USMCA renegotiation, while the China proposal is limited to non-strategic products under a separate managed-trade process. (usnews.com) Reuters did not report any broad rollback of U.S. tariffs on Chinese imports. Instead, the May 13 report described a targeted mechanism tied to specific goods and national-security screening. (finance.yahoo.com) ### What happens next in the USMCA process? July 1 is the next formal deadline in the USMCA review. Reuters reported in April that the United States, Canada and Mexico must either approve renewal of the existing pact or signal an intention to withdraw, a process that would take 10 years and leave more time for negotiations. Greer said at the time that not all issues were likely to be resolved by that date. (usnews.com 1) (usnews.com 2) (whbl.com)

Key numbers

Jamieson Greer said on May 26 the Trump administration will keep tariffs on Canadian and Mexican imports as Washington opens talks to remake USMCA.
trade issues with Canada “significant,” while a separate U.S.-China channel could cover about $30 billion in non-strategic goods.
(whbl.com) By July 1, the United States, Canada and Mexico must renew USMCA or begin the pact’s withdrawal process.
Reuters reported on May 13 that Washington and Beijing were discussing a joint “Board of Trade” to identify roughly $30 billion of non-sensitive goods that could qualify for tariff reductions without crossing national-security red lines.

What happens next

Reuters reported on May 13 that Washington and Beijing were discussing a joint “Board of Trade” to identify roughly $30 billion of non-sensitive goods that could qualify for tariff reductions without crossing national-security red lines.
Reuters reported on May 13 that the proposed U.S.-China “Board of Trade” would identify about $30 billion worth of goods on each side that do not carry national-security sensitivities.
Those products could become candidates for lower tariffs or tariff removal under a managed-trade mechanism.

Sources

Quick answers

What happened in U.S. keeps tariffs on Canada, Mexico?

Jamieson Greer said on May 26 the Trump administration will keep tariffs on Canadian and Mexican imports as Washington opens talks to remake USMCA. (whbl.com) Greer called U.S. trade issues with Canada “significant,” while a separate U.S.-China channel could cover about $30 billion in non-strategic goods. (whbl.com) By July 1, the United States, Canada and Mexico must renew USMCA or begin the pact’s withdrawal process. (usnews.com)

Why does U.S. keeps tariffs on Canada, Mexico matter?

Jamieson Greer said on Tuesday that the Trump administration will keep tariffs on imports from Canada and Mexico while it renegotiates the U.S.-Mexico-Canada Agreement, rejecting the idea that the North American trade pact will operate as a tariff-free zone during the review. (whbl.com) Greer, the U.S. trade representative, said at a Council on Foreign Relations event in Washington that the United States still has a “giant trade deficit” and “significant” unresolved issues with Canada. A separate U.S.-China track points in a different direction. Reuters reported on May 13 that Washington and Beijing were discussing a joint “Board of Trade” to identify roughly $30 billion of non-sensitive goods that could qualify for tariff reductions without crossing national-security red lines. (usnews.com) Why are Canada and Mexico still facing tariffs during a free-trade pact review? Greer said the United States “is going to have tariffs” during the USMCA review, framing them as part of a broader push to reduce trade deficits and raise U.S. content in regional production. Reuters reported that the administration is beginning bilateral negotiations with Mexico while handling Canada separately. (whbl.com) The U.S. position breaks with the idea that USMCA members should trade tariff-free while the pact is under review. Greer said the administration has spent “the past year and a half” telling countries that Washington needs “some level of tariff,” according to Reuters. (usnews.com) Why did Greer single out Canada? Greer said U.S. trade issues with Canada are “significant,” a sharper formulation than he used for Mexico in the Reuters report from Washington and Mexico City. The report said the administration sees Canada as being in a “different spot” as the negotiations unfold. (whbl.com) Canada and Mexico are both covered by USMCA, but Reuters reported that the United States was moving ahead with talks in a way that excluded Canada from the immediate Mexico track. That split matters because it suggests Washington is not treating the two USMCA partners as a single bloc in this round of negotiations. (finance.yahoo.com) What is the China “Board of Trade” supposed to do? Reuters reported on May 13 that the proposed U.S.-China “Board of Trade” would identify about $30 billion worth of goods on each side that do not carry national-security sensitivities. Those products could become candidates for lower tariffs or tariff removal under a managed-trade mechanism. (whbl.com) Scott Bessent, the U.S. Treasury secretary, said the United States planned to discuss forming such a board with China, according to a Yahoo Finance report citing Reuters. The mechanism was described as a way to separate strategic goods from lower-risk commercial trade. (whbl.com) How do the two tracks fit together? The policy, as described in the Reuters reports, leaves tariffs in place for U.S. neighbors while exploring a narrow carve-out for selected Chinese goods. The Canada-Mexico decision applies to broad North American trade flows during the USMCA renegotiation, while the China proposal is limited to non-strategic products under a separate managed-trade process. (usnews.com) Reuters did not report any broad rollback of U.S. tariffs on Chinese imports. Instead, the May 13 report described a targeted mechanism tied to specific goods and national-security screening. (finance.yahoo.com) What happens next in the USMCA process? July 1 is the next formal deadline in the USMCA review. Reuters reported in April that the United States, Canada and Mexico must either approve renewal of the existing pact or signal an intention to withdraw, a process that would take 10 years and leave more time for negotiations. Greer said at the time that not all issues were likely to be resolved by that date. (usnews.com 1) (usnews.com 2) (whbl.com)