U.S.-Canada stalemate expected to hold amid CUSMA review – Law360 U.S.-Canada stalemate expected to hold amid CUSMA review – Law360

The U.S. tariffs have resulted in a noticeable reduction in businesses investing in Canadian manufacturing, says Jesse Goldman, partner, International Trade, in an interview with Law360.

“We’re starting to hear about a lot of Canadian businesses and clients setting up shop in the U.S., not necessarily closing down their Canadian operations, but trying to future-proof themselves,” he says.

Jesse says that, since President Trump has returned to office, the Canadian government has initiated efforts to solidify trading relationships with partners overseas as the relationship with the U.S. has deteriorated. “It takes some time at least on the part of the Canadians to get over the feeling of betrayal and bewilderment and sort of get on with things, and I think most Canadian business is there now, and trade diversification is a real thing,” he says.

It is anticipated that Canadian administrations beyond Prime Minister Carney’s will continue to diversify efforts in trade relationships to hedge against an increasingly unpredictable future in trade with the U.S. Long-term infrastructure projects in Canada are already in the works with overseas partners. “There’s a lot of east-west infrastructure being contemplated, virtually nothing north-south,” says Jesse.

Canadian trade trends are expected to move further in the direction of diversification. “In my view, that horse has left the barn, and it’s going to continue,” says Jesse. “There is nobody in Canada saying, ‘We should not diversify trade, and we should double down on a relationship with the Americans.’”

If you have a subscription to Law360, you can read the full article by Dylan Moroses posted on July 10, 2026.