Trump’s tariff hike still hits goods that are not covered by the USMCA. The Bank of Canada forecast this week that up to 95 percent of Canadian exports could qualify for exemptions under that agreement. Meanwhile, the share of Canadian companies claiming tariff exemptions has soared.

The Canadian team working on a trade deal with the United States could walk away from talks in the wake of a U.S. decision to impose a 35% tariff on some goods from Canada, an adviser to Prime Minister Mark Carney said on Friday.

President Trump will impose a 35% tariff on Canada, up from 25%, as the White House pushes countries to finalize trade deals. Mexico received a 90-day extension, while Trump said other nations have until the deadline to negotiate or face new tariffs.