At first glance, Canada appears better positioned, with tariffs on imports lower than the April 2025. There are key exemptions for USMCA-qualified goods. Still, industry-specific tariffs on metals have strained Canadian industry. Trump regularly threatens to withdraw from the North American trade agreement he helped broker during his first term, and has made clear he has grievances with Canadians for retaliatory actions. Even if the threats are a negotiating chip, it means Canada can’t rest easy heading into US-Mexico-Canada Agreement renegotiations in the second half.