July 21, 2026 – The U.S. Administration’s decision to impose an additional 50 per cent tariff on a broad range of Canadian goods beginning August 19 introduces new uncertainty into the Canada–U.S. trading relationship at a time when businesses need greater predictability.

Unlike previous rounds of tariffs, these duties will apply to covered products even when they comply with CUSMA, undermining the rules and certainty businesses have relied on to make investment, production, and supply chain decisions across North America. Maintaining that stability is important to supporting continued planning, investment, and growth in both countries.

If the tariffs take effect as scheduled, the consequences will extend beyond the products directly affected. Canada’s food, health, and consumer products sector employs more people than any other manufacturing sector in the country and depends on deeply integrated cross-border supply chains. While the immediate focus may be on the products covered, the broader consideration is how continued uncertainty affects manufacturing and investment decisions over time. Decisions to move production mandates and investment elsewhere can have lasting consequences for Canadian manufacturing.

The 30-day window before these measures take effect must be used to reach a negotiated solution and restore the predictability businesses require. If Canada responds with countermeasures, food, health, and consumer product inputs must remain off the tariff list. Adding costs to essential ingredients, materials, and finished goods would further weaken Canadian competitiveness without creating meaningful leverage.

CUSMA remains in force and continues to underpin one of the world’s most integrated and mutually beneficial trading relationships. FHCP will continue working with governments and industry partners to support predictable, rules-based trade and the business certainty needed to invest, compete, and grow across North America.