Trump's Tariffs Boost CUSMA Compliance, But Risks Loom

0:00Canadian companies are now way more locked into the Canada-US-Mexico agreement, or CUSMA, thanks to Donald Trump's tariff threats. Before his second term, compliance hovered around 35.5% for exports to the U.S., but it shot up to 78.7%. Percent between December 2024 and July 2025, and now sits near 90%. That jump happened because firms had to dodge those steep 25% auto tariffs or whatever else. Instead of paying low, most favorite nation rates, they hustled to certify their goods met CUSMA's rules of origin, shifting supply chains to North, American parts, experts like those of Brookings and Oxford economics say was a grind hiring auditors tracing every supplier's supplier, renegotiating contracts, even borrowing to ramp up local production, but the tear of savings made it worth it, buffering Canada's economy from a harder hit last year. Now, with this summer CUSMA review on the horizon, there's worry Trump could tweet the rules,

1:02demand more U.S. only content, or scrap the deal, entirely, that might spike costs again or tip Canada into recession if it all falls apart. Higher compliance shields them short term, but it could trap firms if the goalposts move, though some say, dialing back to global suppliers would be, easier than last year's scramble, keeping North American trade humming one way or another. From your city, powered by AI, this is Vancouver News Today, I'm Corey with The Story.