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CUSMA Not Renewed: What the Trade Deal Impasse Means for Your Wallet

  July 2, 2026 | Trade & Economy The mandatory six-year review of Canada's most important trade agreement came and went this week — and it did not go the way Ottawa hoped. On July 1, U.S. Trade Representative Jamieson Greer confirmed that the United States will not renew the Canada-United States-Mexico Agreement (CUSMA) in its current form, sending the deal into a more uncertain, year-by-year footing right as Canadians are already navigating tariffs, a soft labour market, and a technical recession. Here is what actually happened, why it matters, and what it could mean for your budget in the months ahead. The short version CUSMA isn't dead. It remains legally in force until 2036. But instead of locking in a fresh 16-year term, the deal now shifts into annual reviews, with existing tariffs on steel, aluminum, autos and softwood lumber unresolved for now. What happened on July 1 CUSMA was built with a mandatory joint review every six years. If Canada, the U.S. and Mexico had a...
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Liberals and NDP Push GST Holiday Bill Through House of Commons


The House of Commons has passed legislation that will remove the federal sales tax for two months from a range of items, including children's toys, books, restaurant meals, and takeout, as well as beer and wine.

As expected, the NDP helped the minority Liberals push the exemption through Thursday night. The Conservatives voted against the bill, calling the measure a "temporary two-month tax trick," as did the Bloc Québécois. The bill, which the Liberals and NDP agreed to fast-track through the usual procedural steps, now goes to the Senate. Once passed, the legislation will provide a GST rebate beginning Dec. 14 and lasting until Feb. 15, 2025.

The Liberals originally pitched the tax holiday along with a plan to send $250 cheques to the 18.7 million people in Canada who worked in 2023 and earned $150,000 or less. However, some Canadians have raised concerns about being excluded from the millions who would receive those cheques. The NDP threatened to withhold support for the entire package if the government didn't split the promises into two pieces of legislation. The Liberals did not include the cheques measure in the bill the House of Commons passed Thursday night. It is unclear when they might present that legislation.

NDP Leader Jagmeet Singh said in a media statement on Wednesday that his party will support the cheque measure later if the Liberals expand it to include more Canadians, "including seniors, people with disabilities and injured workers". Prime Minister Justin Trudeau has billed the tax holiday as an affordability measure aimed at alleviating cost-of-living pressures. Some economists have cautioned that the measure could have inflationary consequences later this spring.

Conservative Leader Pierre Poilievre said the government should instead adopt his policy suggestions by scrapping the carbon tax and removing the GST from new homes sold for under $1 million. "My tax cuts are not just about lowering costs. They're about sparking more production," he said.



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