Canada Demands Trade Reciprocity from US Before USMCA Review

Source: bloomberg.com

TL;DR

The story at a glance

Canada's new chief trade negotiator to the US, Janice Charette, stated that Ottawa wants "mutuality" from Washington after making concessions to address President Donald Trump's trade complaints. Prime Minister Mark Carney appointed her to the role on February 16, and she spoke at a Canadian Chamber of Commerce event in Ottawa on April 21. The remarks come as the US-Mexico-Canada Agreement (USMCA) faces a joint review around July 1.[[5]](https://www.prodensa.com/insights/blog/countdown-to-the-2026-usmca-joint-review)

Key points

Details and context

Janice Charette, a veteran public servant and former Privy Council clerk, took the negotiator role to lead on the USMCA review and broader Canada-US trade ties.[[8]](https://www.pm.gc.ca/en/news/news-releases/2026/02/16/prime-minister-carney-announces-new-chief-trade-negotiator-united) The USMCA, replacing NAFTA, requires parties to meet on or around July 1 for the first joint review; agreement extends it 16 years, or it faces annual reviews toward 2036 expiry.[[5]](https://www.prodensa.com/insights/blog/countdown-to-the-2026-usmca-joint-review)

Canada's concessions followed US tariffs in early 2025, prompting retaliatory measures that Ottawa later scaled back on USMCA-compliant goods to restart talks.[[9]](https://en.wikipedia.org/wiki/2025%E2%80%932026_United_States_trade_war_with_Canada_and_Mexico) The digital tax reversal came days before collections were due, after Trump suspended negotiations.[[10]](https://www.cnbc.com/2025/06/30/canada-rescinds-digital-services-tax-after-trump-cuts-off-us-trade-talks.html)

Charette urged businesses to lobby US counterparts, predicting "some turbulence" and no wrap-up by the review date.[[11]](https://www.theglobeandmail.com/politics/article-chief-negotiator-warns-of-bumpy-usmca-road-ahead-past-july-1)

Key quotes

“The Canadian government has made some very significant — I would describe them as concessions — moves already.” — Janice Charette, Canada's chief trade negotiator to the US.[[1]](https://www.bloomberg.com/news/articles/2026-04-21/canada-wants-reciprocity-after-us-pocketed-trade-concessions)

“So far it’s being pocketed. And I think it will be important for us to see some mutuality in terms of the negotiating process.” — Janice Charette.[[4]](https://www.canadianmortgagetrends.com/2026/04/canada-wants-reciprocity-after-u-s-pocketed-concessions)

Why it matters

Tensions could reshape North American supply chains, especially autos, metals, and tech, as US seeks more changes in the USMCA review. Businesses and investors face uncertainty over tariffs and rules of origin if no mutual steps emerge. Watch for bilateral talks before July 1 and any US responses to Canada's push for balance, though full resolution may slip past the date.

What changed

Canada previously imposed retaliatory tariffs on $30 billion-plus of US goods under Justin Trudeau in response to 2025 US tariffs on steel, aluminum, and more. Ottawa withdrew many on USMCA-compliant items starting August 2025 under Mark Carney, while dropping the digital services tax in June 2025. These shifts occurred amid escalating trade war and Trump threats, with actions effective from mid-2025.[[7]](https://www.reuters.com/world/americas/canada-remove-many-retaliatory-tariffs-us-carney-says-2025-08-22)[[6]](https://www.canada.ca/en/department-finance/news/2025/06/canada-rescinds-digital-services-tax-to-advance-broader-trade-negotiations-with-the-united-states.html)

FAQ

Q: What concessions did Canada make to address US grievances?

A: Charette listed removal of the digital sales tax on US tech giants in June 2025, withdrawal of many retaliatory tariffs from the Trudeau era, and border security improvements. These followed US tariff actions and aimed to restart talks.[[3]](https://nationalpost.com/news/canada/janice-charette-canada-us-trade)

Q: When is the USMCA joint review?

A: The first review begins around July 1, 2026, six years after entry into force. Parties must confirm extension in writing or face annual reviews toward 2036 expiry.[[5]](https://www.prodensa.com/insights/blog/countdown-to-the-2026-usmca-joint-review)

Q: Who is Janice Charette and when was she appointed?

A: Charette is Canada's chief trade negotiator to the US, appointed by Prime Minister Mark Carney on February 16, 2026. She has decades in public service, including as Privy Council clerk.[[8]](https://www.pm.gc.ca/en/news/news-releases/2026/02/16/prime-minister-carney-announces-new-chief-trade-negotiator-united)

Q: Why does Charette say the US has "pocketed" concessions?

A: She argues Canada made significant moves but saw no reciprocal action from Washington so far, as negotiations continue toward the USMCA review.[[4]](https://www.canadianmortgagetrends.com/2026/04/canada-wants-reciprocity-after-u-s-pocketed-concessions)