Canada-U.S. Business Brief

AUGUST 20, 2026

Canada-U.S. tariff negotiations

Prospects for a Canada tariff deal remain uncertain

U.S. officials signalled that a near-term Canada tariff agreement remains uncertain as the latest deadline approaches. The outlook keeps pressure on companies to maintain current tariff, sourcing and contract assumptions.

Why it matters: Uncertainty over the treatment of Canadian goods continues to affect pricing, customs planning and cross-border investment decisions.

Sources: Transport Topics report

Trade bulletin - August 19

President Trump announced a three-day delay in the imposition of the planned 50% tariffs on $20 billion of Canadian imports. More details in the next edition of the CUSBA newsletter.

Source: ABC News / Associated Press

Detroit / Canadian Consulate

Andrea Clements to succeed Colin Bird in Detroit

Global Affairs Canada announced that Andrea Clements will become Consul General in Detroit, replacing Colin Bird, who retired this week after four years in the role. Clements arrives from the Canadian Embassy in Washington and will serve the Detroit Consulate's four-state region: Michigan, Ohio, Indiana and Kentucky.

Why it matters: The transition carries forward senior Canadian representation for businesses, governments and institutions engaged in the Great Lakes binational relationship.

Sources: Global Affairs Canada release  |  CBS Detroit report

CUSMA / Great Lakes economy

Report highlights the economic stakes of a CUSMA breakdown

A new report cited by Canadian Manufacturing estimates that Canada could lose more than 100,000 jobs if CUSMA were to break down. It identifies Ontario and several U.S. states, including Michigan and Indiana, among the regions most exposed.

Why it matters: The analysis underscores how deeply employment and production in the Great Lakes region depend on predictable North American trade rules.

Sources: Canadian Manufacturing report

Canada / July inflation

Canada's consumer inflation rises to 3.0% in July

Statistics Canada reported that the Consumer Price Index rose 3.0% year over year in July, following a 2.8% increase in June. On a seasonally adjusted monthly basis, the index increased 0.3%.

Why it matters: Inflation conditions influence input costs, wage planning and consumer demand for businesses operating across the border.

Sources: Statistics Canada release

United States / July retail sales

U.S. retail and food-services sales total $763.6 billion

U.S. retail and food-services sales were $763.6 billion in July, down 0.6% from June but up 5.0% from a year earlier. Sales over May through July were 6.3% above the same period in 2025.

Why it matters: The release is a timely demand signal for Canadian exporters and suppliers serving the U.S. consumer market.

Sources: U.S. Census Bureau release

BILATERAL GOODS TRADE

▲ $67.9B

June | +1.8% month over month

TRANSBORDER FREIGHT VALUE

▲ 15%

May | year over year

NORTHERN-BORDER TRUCK ENTRIES

▼ 5.27M

2025 | -5.1% year over year

CAD / USD

▼ US$0.7194

Per C$1 | -0.2% on Aug. 18

USMCA-COVERED CANADIAN IMPORTS

▲ $29.8B

June | +1.7% month over month

U.S. MANUFACTURING PMI

▲ 55.6

July | up from 53.3

U.S. MONTHLY DEFICIT

▲ $432B

July | up from $120B in June

10-YEAR BOND YIELDS

CA 3.70% | U.S. 4.71%

▲ CA +9 bps | ▲ U.S. +2 bps since Aug. 6

United States / import policy

USTR details Section 338 tariffs on Canadian goods

The U.S. Trade Representative said the administration imposed additional 50% tariffs on Canadian goods under Section 338 of the Tariff Act of 1930. The statement identifies alcohol, dairy and vehicle market-access issues as part of the U.S. rationale.

Why it matters: Importers and exporters need to confirm product-level duty exposure and preserve documentation supporting customs and origin decisions.

Sources: USTR statement

Canada / supply-chain compliance

Canada consults on stronger forced-labour measures

Canada launched public consultations on measures to strengthen its response to forced labour in global supply chains. The consultation follows legislation that could require importers of listed goods to demonstrate that their products are not linked to forced labour.

Why it matters: Businesses importing into Canada should keep supplier due-diligence and traceability practices ready for more demanding compliance requirements.

Sources: Global Affairs Canada consultation

Ontario / border operations

Ontario commits $32.5 million to border-security tools

Ontario announced a $32.5 million investment in tools, technology and investigative resources intended to detect and disrupt firearms, drugs and other contraband entering the province. The announcement was made in Windsor, a key Canada-U.S. gateway.

Why it matters: Strong border-security capability supports the safe, reliable movement of legitimate freight through the Detroit-Windsor corridor.

Sources: Ontario announcement

Michigan / regional capacity

Michigan expansions bring 182 new jobs to mid and west regions

Michigan announced three business expansions expected to create 182 jobs, including a centralized manufacturing and operations hub in Jackson County. The projects also include infrastructure upgrades and growth in medical-device and manufacturing operations.

Why it matters: New regional capacity can strengthen the supplier base and operating ecosystem connected to the Great Lakes cross-border corridor.

Sources: Michigan Economic Development Corporation

Canada / manufacturing

Canadian manufacturing sales edge higher in June

Statistics Canada reported that manufacturing sales rose 0.1% in June, led by chemical products and transportation equipment. Total sales increased 9.3% in the second quarter of 2026.

Why it matters: Transportation-equipment activity is particularly relevant to the integrated industrial base spanning Ontario, Michigan and the broader Great Lakes region.

Sources: Statistics Canada release

United States / manufacturing

U.S. manufacturers emphasize North American trade ties

The National Association of Manufacturers stressed that U.S. trade with Canada and Mexico is central to competing with China and sustaining regional production. Its comments call for preserving North American partnerships alongside domestic manufacturing goals.

Why it matters: The perspective reflects the business case for integrated Canada-U.S. supply chains in automotive, energy and advanced manufacturing.

Sources: National Association of Manufacturers

MSU Canadian Studies Center

CN Forum 2026: Accelerating Innovation through Critical Infrastructure

The 2026 CN Forum takes place September 16 at the MSU Henry Center. Business, policy and binational leaders will examine Great Lakes infrastructure, automotive manufacturing, trade, next-generation fuels and the future of mobility.

Why it matters: The forum offers CUSBA members a timely opportunity to connect around shared U.S.-Canada priorities in the Great Lakes region.

Sources: Event details and registration

Mark High

Mark High is a Consulting Member at Dickinson Wright PLLC, a charter member of CUSBA. Founded in Detroit and approaching its 150th anniversary, Dickinson Wright has more than 550 attorneys in 23 U.S. offices and full-service Canadian law offices in Toronto and Windsor, Ontario, making it one of the few firms able to practice in both countries.

Mark has been active in CUSBA since its founding in 1992. In 2012, he stepped in as President, reconstituting the Board of Directors and helping establish an operational structure that remains in place today. He was instrumental in organizing programs that included an introductory event with Michigan Governor Rick Snyder and Canadian Consul General Roy Norton, which helped launch the project that became the Gordie Howe International Bridge.

He also instituted the annual Cross-Border Economic Forecast event, held for 14 consecutive years, including an online edition in 2021. Through this work, Mark has helped raise awareness of issues affecting the cross-border community across the Great Lakes region and both countries.

Mark is proud of CUSBA's accomplishments over the past 15 years and looks forward to the work of Jim Becker, Canadian Consul General Andrea Clements, the Board and the CUSBA membership in the years ahead.