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ARTICLE · 10 DECEMBER 2025

International Trade: Navigating The Rapidly Changing Landscape

2025 was notable for the dramatic shifts in Canadian trade policy that have been driven in large part by often-fluctuating U.S. tariffs.

CanadaInternational Law

Key takeaways

  • In 2026, Canadian trade policy will remain driven by U.S. tariffs, plus CUSMA/USMCA renegotiations, which will impact sectors like automotive production and agriculture.
  • Companies should prepare for increased scrutiny of their tariff mitigation strategies by tax and customs authorities.
  • Government efforts to address the new trade realities by reducing internal barriers, diversifying trade relationships, and protecting domestic sectors will pose their own challenges.

2025 was notable for the dramatic shifts in Canadian trade policy that have been driven in large part by often-fluctuating U.S. tariffs. The legal landscape for trade in Canada in 2026 will continue to be shaped by tariff-centric U.S. trade policy. This policy has undermined not just the premise of a North American market that has guided Canada's trade policy for nearly 40 years, but the global rules-based trading system that has developed since the end of World War II.

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