CUSMA Collapse Could Devastate Canadian Economy, Report Warns

A new report warns that a collapse of the Canada-U.S.-Mexico (CUSMA) free trade agreement could lead to significant job losses on both sides of the border. According to Oxford Economics, Canada could lose up to 102,000 jobs and the United States could lose 214,000 by 2027 if the agreement collapses.

The report found that even keeping current tariffs in place would slow export growth and keep unemployment elevated. The Canadian industries facing the deepest hits from a collapse were identified as autos, metals, machinery, electronics, chemicals, wood products, and paper products.

Ontario, Quebec, Manitoba, and New Brunswick would bear the brunt on the Canadian side, alongside Michigan, Indiana, Washington, and Iowa in the United States. A successful renegotiation of the agreement could add 98,000 jobs in Canada and 137,000 in the United States.