Tariff Tension Continues

Canada is pushing the United States to lift tariffs on lumber, steel, aluminum and autos before this summer’s review of the North American trade pact. (ipolitics.ca) Prime Minister Mark Carney said on April 22 that Washington will not “dictate the terms” of the Canada-United States-Mexico Agreement review, after reports the U.S. wanted concessions before formal talks begin. Canada’s Finance Minister François-Philippe Champagne said Ottawa has told Washington that sectoral tariffs must be addressed. (usnews.com) The formal review of the trade pact is scheduled to begin on July 1, 2026, and Carney’s government announced a 24-member advisory committee on April 21 to prepare for it. Dominic LeBlanc, the minister responsible for Canada-U.S. trade, is chairing that panel, and its first meeting is set for April 27. (usnews.com) The tariff fight is no longer just about one product. Canada says U.S. duties now hit several export sectors at once, while U.S. Trade Representative Jamieson Greer has pointed to Canadian dairy tariffs and provincial alcohol rules as trade barriers on the Canadian side. (moosejawtoday.com) (ustr.gov) Softwood lumber is the oldest fight in the stack. The 2006 Softwood Lumber Agreement expired on October 12, 2015, and the United States resumed anti-dumping and countervailing duties in 2017; Canada is still challenging those duties through Canada-United States-Mexico Agreement dispute panels. (congress.gov) (international.gc.ca) The latest lumber numbers are still moving. Global Affairs Canada says the U.S. Commerce Department’s preliminary results in the seventh annual review put the combined duty for “all others” at 24.83%, while housing and lumber groups say separate U.S. tariff actions have added another layer of uncertainty. (international.gc.ca) (nahb.org) That uncertainty runs straight into construction budgets. The National Association of Home Builders said this week that the U.S. imports roughly one-third of the lumber it uses and that Canada supplies about 85% of those imports, so higher duties on Canadian wood feed directly into framing and renovation costs. (nahb.org) Canada has kept some retaliatory measures in place while the talks continue. Export Development Canada says Canada removed most 25% tariffs on CUSMA-compliant U.S. goods on September 1, 2025, but kept tariffs on steel, aluminum and non-CUSMA-compliant vehicles. (edc.ca) The U.S. position is that Canada has its own unresolved barriers. Greer told lawmakers this week that the two countries are pursuing different trade models, and the U.S. annual trade-barrier report again flagged Canada’s dairy system, liquor sales rules and customs administration. (moosejawtoday.com) (ustr.gov) For homeowners, builders and insurers, the practical problem is that bids are being written while the tariff rules are still shifting. Carney says Canada will keep negotiating, but with the July 1 review approaching, neither side has shown it is ready to clear the tariff list first. (cbc.ca) (ipolitics.ca)