Canada, U.S. to launch formal talks to review their FTA in mid-January 2026

Dominic A. LeBlanc is a Canadian lawyer and politician who serves as President of the King’s Privy Council for Canada, Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs and One Canadian Economy, and Minister of Internal Trade. (Photo credit: X/@DLeBlancNB)

Mark Carney confirmed to Provincial leaders that Dominic LeBlanc will be the country’s point person for U.S.-Canada trade relations

TORONTO (TIP): Canada and the U.S. will launch formal discussions to the review their free trade agreement in mid-January 2026, the office of Canadian Prime Minister Mark Carney said.

The Prime Minister confirmed to Provincial leaders that Dominic LeBlanc, the country’s point person for U.S.-Canada trade relations, “will meet with U.S. counterparts in mid-January 2026 to launch formal discussions,” Mr. Carney’s office said in a statement late Thursday (December 18, 2025). The United States-Mexico-Canada trade pact, or USMCA, is up for review in 2026. U.S. President Donald Trump negotiated the deal in his first term and included a clause to possibly renegotiate the deal in 2026. Mr. Carney met with the leaders of Canada’s Provinces on Thursday, December 18, 2025, to give them an update on trade talks with the U.S.

Canada is one of the most trade-dependent countries in the world, and more than 75% of Canada’s exports go to the country’s southern neighbour. But most exports to the U.S. are currently exempted by USMCA.

Mr. Trump’s cut off trade talks to reduce tariffs on certain sectors with Mr. Carney in October after the Ontario Provincial Government ran an anti-tariff advertisement in the U.S. That followed a spring of acrimony, since abated, over Mr. Trump’s insistence that Canada should become the 51st U.S. state.

Mr. Carney said earlier Thursday, December 18, 2025, that Canada and the U.S. were close to an agreement at the time on sectoral tariff relief in multiple areas, including steel and aluminum. Tariffs are taking a toll on certain sectors of Canada’s economy, particularly aluminum, steel, auto and lumber.

Mr. Carney also said trade irritants flagged this week by U.S. Trade Representative Jamieson Greer are elements of a “much bigger discussion” about continental trade. Mr. Greer said a coming review of the Canada-U.S.-Mexico trade deal will hinge on resolving U.S. concerns about Canadian policies on dairy products, alcohol and digital services.

Mr. Carney and the Provincial premiers agreed to meet in person in Ottawa early in 2026. Canada is the top export destination for 36 U.S. states. Nearly $2.7 billion worth of goods and services cross the border each day.

About 60% of U.S. crude oil imports are from Canada, as are 85% of U.S. electricity imports.

Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing in for national security. Mr. Carney said U.S. access to Canada’s critical Ministers is not a certainty.

“It’s a potential opportunity for the United States, but it’s not an assured opportunity for the United States. It’s part of a bigger discussion in terms of our trading relationship, because we have other partners around the world, in Europe for example, who are very interested in participating,” Mr. Carney said earlier on Thursday, December 18, 2025.

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