Former trade chief says U.S. tariff deal unlikely before midterms

Canada’s former chief trade negotiator Steve Verheul says he does not expect Ottawa to secure a tariff deal with Washington before the U.S. midterm elections. Speaking at a business event, he said there may be a brief opening if the Trump administration looks for a political win, but he thinks talks are more likely to continue into next year. Verheul, who led Canada’s side in the CUSMA renegotiation during Donald Trump’s first term, spoke as the trade pact’s formal review period begins on July 1. Canada and Mexico want the agreement extended past 2036, while the U.S. could choose annual reviews or, with notice, leave the deal entirely. Other speakers at the event said they see a low chance of the United States tearing up CUSMA. BMO chief economist Doug Porter said the agreement is still likely to remain in place, even as U.S. tariffs continue to weigh on Canadian exports and limit economic growth. Verheul said the more pressing issue for Canada is the set of U.S. sectoral tariffs affecting steel, aluminum, autos and other goods. He also questioned the strength of tariff deals other countries have made with Trump, saying they may not last over time.