Tariff deal with Trump unlikely before U.S. midterms, says Canada’s former

Canada’s former chief trade negotiator said Monday he doesn’t expect Ottawa to reach a tariff deal with Washington before the U.S. midterm elections.

Steve Verheul told an online business audience that there could be a window when U.S. President Donald Trump and his administration are looking for a political win before American voters head to the polls in the fall.

“If that happens, there’s a possibility for it to come together,” Verheul said.

“But I think it’s more likely that the discussions will continue beyond the midterms and possibly even into next year.”

Verheul led talks for Canada during the renegotiation of the North American free trade pact during Trump’s first term. He’s now principal at the public affairs agency GT & Co.

He was speaking at an event for Bank of Montreal clients charting the trade outlook ahead of July 1, when the review of the Canada-U.S.-Mexico Agreement, or CUSMA, formally kicks off.

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While Canada and Mexico have both signalled they’d like to see CUSMA renewed beyond 2036 for another 16-year period, the U.S. could opt to send the deal to rolling annual reviews.

Trump could also trigger a clause to exit the agreement at any point with six months’ notice.

Prime Minister Mark Carney said earlier this month it’s “no secret” the U.S. president is not the biggest fan of CUSMA but stressed there are specific sectors where Canada continues to press the Trump administration to work with Ottawa.

BMO chief economist Doug Porter said he puts “a very low probability” on the United States tearing up the agreement.

Porter acknowledged there’s been basically no growth in the economy over the past year, as U.S. tariffs have tanked Canadian exports, but he would not consider Canada to be in a recession.

BMO’s forecast, which sees the economy struggling to grow in 2026 before rebounding in 2027, assumes the U.S. tariff stance remains broadly unchanged over the coming year.

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Canadian trade officials have agreed to meet with U.S. and Mexico counterparts on July 1 to negotiate signing an extension of the Canada-United States-Mexico Agreement (CUSMA) as U.S. President Donald Trump continues to cast doubt on the future of the trade agreement.

While Trump has mused openly about walking away from CUSMA,…