By Paul Vieira
OTTAWA--Canada's priority in trade talks with Washington is to seek relief from hefty U.S. tariffs on key industrial sectors like steel, aluminum and automobiles, the country's ambassador to the U.S. told a Toronto audience.
Former pension-fund and BlackRock executive Mark Wiseman said Canadians shouldn't get too focused on the formal review process starting on July 1 concerning the existing U.S.-Mexico-Canada trade treaty, USMCA. Wiseman told a business audience that senior Trump officials, led by U.S. Trade Representative Jamieson Greer, have indicated they are keen to keep the pact intact, although with changes. Even if there's no agreement to renew after July 1, USMCA's terms will remain in place for another decade, until 2036.
Canadian officials, instead, are preoccupied about the sector-specific tariffs of up to 50%, which are squeezing segments of country's manufacturing sector. "Those tariffs are the ones that are biting in terms of impact on the Canadian economy," Wiseman said. "We need to find a path forward on quickly" on those sectoral taiffs, "because unlike everything else under USMCA, the default is they're staying in place, and they are incredibly, incredibly painful to wide sectors of the of the Canadian economy."
Canada's chief minister for U.S. trade, Dominic LeBlanc, has said Ottawa is unwilling to agree to changes to USMCA or other policies -- such as a province-led ban on U.S. wines and spirits -- until the sector-specific tariffs are eased. Canada is America's largest foreign supplier of steel and aluminum, and fourth-largest in light-motor vehicles.
The U.S. sector-specific tariffs, the threat of further Trump administration duties and the uncertain future of USMCA, have cast a pall over the Canadian economy, prompting businesses to either cancel or delay spending and hiring plans. Business investment in Canada has declined for five straight quarters, and policymakers said this needs to reverse to help underpin a Canadian recovery. Most trade watchers don't expect the U.S. to agree to the USMCA renewal when officials from the three countries gather on July 1, arguing that the current state of policy uncertainty gives Washington negotiating leverage.
Mark Warner, a trade and investment lawyer who practices in both the U.S. and Canada, said Wiseman is trying to de-emphasize the annual review process as a means to reduce the uncertainty holding back executives. "But for investors and traders, the annual USMCA reviews will likely be what they focus on, when they try to calculate and assess risks and uncertainties as they make significant strategic decisions," Warner said.
Like Prime Minister Mark Carney did last month, Wiseman tried Tuesday to play down any conflict with the U.S.. He said Canada's strategy of pursuing new trade markets should not be interpreted as Ottawa turning its back on the U.S. economy. "We, as Canadians, are privileged to be next door to the world's most dynamic economy," said Wiseman, during a question-and-answer session with Bank of Montreal Chief Executive Darryl White. "We should not seek to trade that for anything."
Carney said in a video address in April that Canada's economic ties to the U.S. had become a source of weakness. Wiseman said Tuesday that Canada had become too complacent about its economy, over relying on trade with the U.S. to be the main engine of growth. "I think that's what the Prime Minister has said," Wiseman said. "We need to diversify our sources of demand for our products."
Wiseman added that talks with U.S. officials are proceeding on an almost daily basis, on a "productive, serious, informed, and respectful" basis. "Behind the scenes, stuff is getting done."
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
June 15, 2026 17:14 ET (21:14 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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