U.S. Ambassador Hoekstra Signals Trump Open to CUSMA Deal, June 11

U.S. President Donald Trump said Wednesday he is “not looking to renew” the Canada-U.S.-Mexico Agreement on trade, known as CUSMA, before a July 1 deadline to extend it for 16 years. One day later, his ambassador to Canada offered a different message: the U.S. actually has “tremendous” needs that Canada can meet. The shift signals ongoing negotiations despite Trump’s public skepticism.

What Hoekstra Said About U.S. Needs

U.S. Ambassador Pete Hoekstra told the Eurasia Group summit in Toronto on Thursday that when Trump says America doesn’t need anything from Canada, he is wrong. Hoekstra said the U.S. has significant demand for Canadian potash, oil, autos, and other resources. He urged Canada to “put on their sales hat” and make a case that it is the best place for America to source these goods. The ambassador said the two countries operate in a “thoroughly integrated ecosystem” with similar labor costs and environmental standards in the auto industry.

Trump’s Original Position and the July 1 Deadline

Trump told reporters Wednesday that the U.S. has trade deficits with both Canada and Mexico and should have surpluses instead. He said Canada and Mexico “need everything that we have” but America needs nothing from them. Canada and Mexico both called for the 16-year extension. If the Trump administration misses the July 1 deadline, the trade pact stays in place under an annual rolling review for up to 10 years. Trump could also give six months’ notice to pull out entirely, but administration officials have suggested that is not likely to happen soon.

Bilateral Deals Likely Alongside Trilateral Talks

Canada-U.S. Trade Minister Dominic LeBlanc said he expects bilateral agreements to be negotiated alongside the main trilateral framework. LeBlanc told the U.S.-Canada Summit that bilateral arrangements between Canada and the United States could resolve issues all three countries face. He said if those deals succeed, he is hopeful the trilateral extension could follow. LeBlanc met with U.S. Trade Representative Jamieson Greer in Washington last week and said they will reconnect at the G7 in France.

Canada’s Response and Next Steps

Prime Minister Mark Carney said Canada is also exploring a bilateral agreement with Mexico. When asked about Hoekstra’s comments, Carney said he is engaged with Trump on “some good offers” and that the government will get a deal that’s right for Canadians. Hoekstra said the Trump administration is still waiting for Canada to put a formal offer on the table. The ambassador said potash is one commodity the U.S. clearly needs. Canada is the world’s top exporter of potash, accounting for nearly 40 percent of global exports, and the U.S. buys 53 percent of Canada’s potash exports.

Final Thoughts

Hoekstra’s remarks suggest Trump’s threats may be negotiating tactics rather than final positions. Canada has until July 1 to present offers that address U.S. demands. The outcome will shape North American trade for years.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.