Hub Podcasts There’s no Canada-U.S. trade deal—and that’s a good thing
Aug 4, 2025
Mark Mancini, an Assistant Professor at Thompson Rivers University, brings insightful analysis to the trade dynamics between Canada and the U.S. He argues that the absence of a trade deal could actually benefit Canadian exporters amidst rising tariffs. Mancini discusses the political pressures impacting trade relations, particularly under Trump's tariffs. He also explores the intersection of trade policies and legal challenges, emphasizing recent court rulings on bike lanes that highlight the balance between public safety and individual rights.
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Canada-U.S. Trade Interdependence
- Canada's economic relationship with the U.S. involves supplying raw materials and intermediates, not just finished goods. - This interdependency makes Canada a vital part of North America's factory economy, limiting the impact of U.S. tariffs.
Tariffs Mostly Spare CUSMA Goods
- Most tariffs imposed by the U.S. target only non-CUSMA goods, limiting their effect on Canada. - Canadian exporters gain competitive advantage as tariffs on other U.S. trading partners rise.
Tariffs' Political Risks in U.S.
- Trump's tariffs have not yet increased U.S. consumer prices significantly due to delay in passing costs. - Rising prices might soon erode support for tariffs ahead of upcoming U.S. midterm elections.