Thanks to the policies of U.S. President Donald Trump, compliance with the Canada-U.S.-Mexico Agreement (CUSMA) among Canadian firms has surged. Following Trump’s second inauguration, companies faced pressure to comply with CUSMA to avoid high tariffs on Canadian imports, which previously many found unnecessary due to lower “most-favored-nation” tariffs. A report indicated that compliance for Canadian exports to the U.S. jumped from 35.5% to 78.7% between December 2024 and July 2025, and by early 2026, compliance had reached nearly 90%. Achieving CUSMA Certification of Origin required significant investment in compliance efforts, including hiring specialists to trace supply chains and adjust sourcing to meet North American content rules. Despite the challenges, experts assert that the benefits of compliance outweighed the costs, providing essential protection against tariffs during a period of trade uncertainty.
Why It Matters
The shift towards increased CUSMA compliance reflects significant changes in North American trade dynamics, driven by tariff policies. Historically, Canadian firms relied on lower tariffs, making compliance optional; however, the introduction of high tariffs spurred a rapid adjustment. This compliance not only reshaped supply chains but also highlighted the economic vulnerabilities related to fluctuating trade policies, particularly in the context of Trump’s administration. Increased compliance is crucial as the upcoming review of the agreement could lead to further changes in trade rules, impacting economic stability in the region.
Want More Context? 🔎
Loading PerspectiveSplit analysis...
