Canadian business groups say trade uncertainty continues to linger ahead of the formal review of the trade agreement between Canada, the U.S. and Mexico, however there are some reasons for hope following the U.S. Supreme Court’s decision last week curtailing global tariffs.
Canadian Federation of Independent Business president Dan Kelly says the ruling has “changed a little bit of the thinking” around tariffs overall, even as separate sectoral tariffs remain in place for Canadian industries like steel, aluminum, automobiles, lumber and cabinetry.
U.S. President Donald Trump responded to the top court’s decision, which struck down his “Liberation Day” tariffs and fentanyl-related duties on Canada, Mexico and China, by signing an executive order to enact a 10 per cent worldwide tariff.
But Kelly says there are short-term wins for Canada, which will be felt especially by small businesses that sell goods not covered by the trade agreement that were previously subject to a 35 per cent levy.
He says the bigger worry is what the trade agreement will look like over the long-term with a review of the pact due this summer.
It comes as the Trump administration’s top trade czar told CBC that Canada will have to accept “some level of higher tariff” if it wants to reach a new trade deal with Washington.
This report by The Canadian Press was first published Feb. 25, 2026.
