The US-Canada trade war is stuck. Trump says he is "in no rush," and Washington will hold its position until Canada wants to "get to yes." Meanwhile, Prime Minister Mark Carney courts Europe, China and India, even though about 72 percent of Canada's goods exports still go to the United States, and two provinces question Canada itself.
The Buy European initiative favors weapons made in Europe, and Washington is pushing back hard. Ambassador Puzder warned Brussels that "only our enemies benefit," the Pentagon threatened the Buy American waivers, and France and Britain were left out of a NATO meeting. But America's missile stocks run low, and buyers wait.
The BRICS summit in New Delhi ended with a 45-page declaration that never names the United States. Modi rebuked China over critical minerals, Russia won silence about Ukraine, Iran left with its existing payment channels endorsed, not defended, and no common currency appeared. Eleven countries, eleven agendas, one photograph.
On July 1, 2026, the U.S. officially refused to renew USMCA. "The United States did not agree to renew the USMCA in its current form," said USTR Jamieson Greer. The trade deficit is Trump's primary concern: 197,000 million dollars with Mexico plus 46,000 million with Canada in 2025, more than double what it was when USMCA took effect.
Carney claims “the U.S. has changed,” but Canada has long maintained trade barriers hitting 270% on American dairy. President Trump finally confronted Ottawa's protectionist supply-management system, over-quota tariffs and “buy Canadian” rules choking U.S. exports. Real allies don't hide behind 300% walls then demand reciprocity from Washington.
