Canada seeks trade concessions to preserve low tariffs amid U.S. steel, aluminum, and lumber tariffs, projecting 1.6% GDP growth in 2026.

The review of the Canada-U.S.-Mexico Agreement (CUSMA) is critical for Canada's economy, with strategist Ashish Dewan arguing that strategic concessions, such as opening dairy markets and adjusting the Online Streaming Act, could help Canada maintain its lower 6% tariff rate in the face of U.S. Section 232 tariffs on steel, aluminum, and lumber. Despite concerns about Canada's agreement with China on electric vehicle tariffs, Dewan sees opportunities for cooperation due to mutual economic dependence. He forecasts 1.6% GDP growth in 2026, backed by $1 trillion in federal investments, the elimination of the carbon price in April 2025, and a 6.2% unemployment rate by year-end.