Trump’s Trade Claims, Global Turbulence and Canada’s Search for Stability
A familiar pattern returned to North American politics this week when former President Donald Trump claimed that the Canada–United States–Mexico Agreement (CUSMA) would expire next year. The statement was inaccurate, but its impact was immediate. Markets wavered, industry groups sounded alarms, and Canada was briefly pulled into a crisis born not of policy change, but of political rhetoric.
CUSMA, which replaced NAFTA, is not set to expire. What lies ahead is a scheduled review, a mechanism designed to adjust and strengthen the agreement rather than dismantle it. Still, Trump’s assertion reverberated across sectors that depend on predictable cross-border trade. Farmers, manufacturers and investors, particularly in agriculture and the automotive industry, reacted swiftly to the uncertainty. In an interconnected economy, even the suggestion of instability can freeze investment and disrupt supply chains.
Behind the scenes in Washington, industry leaders moved quickly to contain the damage. Agricultural associations, automakers and retailers warned lawmakers that renewed trade conflict would hurt American consumers first. The United States exports more to Canada and Mexico than to any other markets, and its manufacturing supply chains rely heavily on parts that cross borders multiple times. The gap between economic reality and political messaging became stark.
In Canada, the episode sharpened a contrast in leadership styles. Mark Carney, the former governor of both the Bank of Canada and the Bank of England, emerged as a steady voice amid the turbulence. Carney emphasized facts over theatrics, noting that the agreement was not expiring and that stability rests as much on trust as on policy. His calm reassurance resonated in a moment when volatility threatened confidence.
Trump, however, escalated his rhetoric beyond trade. In remarks targeting Somali communities in Minnesota and Representative Ilhan Omar, he employed language that immigrant advocates described as dehumanizing. The comments spread fear among families and drew criticism for misrepresenting the facts of a fraud case he cited. For many Somali Americans, the episode underscored how political language can translate quickly into lived anxiety.
At the same time, Trump praised a private meeting involving figures close to Russian President Vladimir Putin, even as Russia intensified its assault on Ukraine. The juxtaposition unsettled U.S. allies. Canada pledged additional military support to Ukraine, and European nations advanced plans to use frozen Russian assets to bolster Kyiv. The divergence highlighted a broader question of values and alliances at a moment of global strain.
Canada faces its own internal challenges, from debates over temporary foreign worker programs to political instability in British Columbia. Looming over all of this is economic risk: analysts warn that soaring valuations and interlocking investments in the artificial intelligence sector could form a speculative bubble with global consequences.
Together, these developments point to a deeper tension shaping the continent. Volatility, whether driven by rhetoric, geopolitics or financial markets, has tangible costs. As uncertainty spreads, the demand grows for leadership grounded in expertise and restraint. In an era defined by overlapping crises, the choice between chaos and competence is no longer abstract. It is playing out in real time, with consequences that extend well beyond any single headline.
