The U.S., Canada, and Mexico have now signed a new version of NAFTA—called the United States-Mexico-Canada Agreement, or U.S.M.C.A.—but Congress has not yet approved the deal, so it hasn’t taken effect.
Even if Congress does approve the revised trade deal, that won’t resolve the trade dispute, because the tariffs on Canadian steel and aluminum remain in place. This is a big deal for Canada.
“This is a life-and-death issue for us,” says Stein. “Seventy-five percent of our exports go to the United States.”
President Trump’s supporters see things differently. Larry Kudlow, an economic adviser to the White House, says the tariffs are part of a host of measures the president has needed to implement to make trade more fair to the United States.
Free trade “has, in some cases, damaged the American economy, damaged American workers in manufacturing and other businesses,” Kudlow told reporters. “So the president’s stepped up to the plate here.”
Beyond the trade dispute, there’s been a broader divergence between the two countries.
For decades, Canada and the U.S. have been partners in international institutions such as NATO, in global treaties such as the 2015 Paris climate accord, and in defense agreements such as NORAD—the military defense of North America that Canada and the U.S. have run together since the Cold War.