Canada set to start CUSMA talks following U.S. ambassador’s rejection of expanded deal 

U.S. Ambassador to Canada Pete Hoekstra

September 17,2025

RED FM News Desk

Canada is expected to announce formal consultations on the Canada-U.S.-Mexico Agreement (CUSMA) within the next week, following the Trump administration’s launch of its own review and the U.S. ambassador’s statement that a larger deal is “not going to happen” soon. 

Trade Minister Dominic LeBlanc’s office told CBC News that the government will soon post an official notice inviting public comments and feedback on CUSMA. In preparation, Canada plans to engage with industry leaders, provinces and territories, and Indigenous partners. 

The U.S. announced Tuesday that it is formally beginning consultations to assess CUSMA’s performance over the past five years. This marks the start of a months-long review process and signals that formal negotiations could begin in early 2026. 

U.S. Ambassador to Canada Pete Hoekstra said the consultations reflect that a broader agreement between Canada and the U.S. is unlikely at this time. He noted that while the Americans had hoped to expand CUSMA into a larger trade, energy, automotive, and security deal, these consultations are a way for the U.S. government to collect input on potential revisions. 

Finance Minister François-Philippe Champagne responded to Hoekstra’s comments, noting that Canada had proposed an economic and security partnership after facing U.S. tariffs. Trump-era tariffs, including a 50% tax on steel and aluminum, remain in effect. 

Prime Minister Mark Carney previously sought a new security and economic agreement with the U.S., but now says Canada is negotiating a series of smaller deals to support industries affected by tariffs. Officials are also preparing for the mandatory six-year CUSMA review, which must be conducted jointly by Canada, the U.S., and Mexico. 

Mexico has also begun its public consultation process, with Economy Secretary Marcelo Ebrard posting a video online confirming the move.