The terms of the North American Free Trade Agreement will be renegotiated in 2026 in the shadow of U.S. tariff policy.
Published December 22, 2025
Canada has appointed former BlackRock executive Mark Wiseman as its new ambassador to the United States, but future trade and tariff negotiations are likely to take up much of his tenure.
Canadian Prime Minister Mark Carney said in a statement Monday that Wiseman will help manage Canada-U.S. relations, which have soured under tariffs imposed by President Donald Trump.
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“Mr. Wiseman will be a key contributor to the government’s efforts to advance Canada and the United States’ priorities, including securing our borders and strengthening our trade and investment relationship,” Mr. Carney said in a statement.
Relations between the two countries have calmed somewhat since the United States launched a trade war targeting Canadian goods, with anger growing over what is widely seen as an act of economic hostility against the longtime ally.
The Trump administration has imposed several tariffs on Canada, including a flat 25% tariff, for failing to stop immigration and fentanyl from entering the country.
This comes despite data showing that only a small portion of fentanyl is smuggled into the United States across the U.S.-Canada border.
The United States then imposed significant tariffs on automobile, steel, and aluminum imports, all of which disproportionately affected Canada.
Mr. Trump, who was elected on a promise to take a tough stance in the face of the U.S. threat, and Mr. Carney reached an agreement in August to roll back some measures. A more comprehensive agreement remains elusive.
President Trump has also stoked anger by repeatedly saying Canada should become the 51st U.S. state, a suggestion Carney firmly rejects.
Those tensions could flare up again in the coming months as officials begin to renegotiate the terms of the United States-Mexico-Canada Free Trade Agreement, also known as USMCA.
Canadian officials are expected to begin discussions with U.S. officials in mid-January about the USMCA, which currently exempts many key items that would have been subject to tariffs under President Trump’s policy.
Canada is the largest export destination for 36 U.S. states, with approximately $2.7 billion worth of goods and services crossing its borders every day.
Carney has sidestepped expectations for the future of trade relations with the U.S., saying Canada will protect its economic interests but cannot control U.S. policy.
