WASHINGTON, DC (By CABC, 10.Aug.2026, Words: 362) — The Canadian American Business Council (CABC) released its latest economic report, “Economic Impacts of US-Canada Tariff Escalation Under the USMCA,” providing a comprehensive analysis of the bilateral commercial relationship and the likely economic consequences of 3 distinct potential outcomes of USMCA negotiations.
As Canada and the US navigate a pivotal moment in the bilateral relationship, including the ongoing review of the United States-Mexico-Canada Agreement (USMCA), the report underscores that the USMCA supports economic growth, affordability, and job creation.
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“Successful renegotiation of USMCA would create an additional 137,000 American jobs and 98,000 Canadian jobs in 2027 relative to the status quo. By contrast, the breakdown of USMCA would be accompanied by 214,000 and 102,000 fewer jobs, respectively […]” the report reads.
“The US-Canada relationship is one of the most integrated economic partnerships in the world, supporting millions of jobs, driving innovation, and strengthening our collective competitiveness,” said CABC CEO Beth Burke. “This report highlights the extent of integration and how we are stronger together.”
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Drawing on extensive quantitative analysis and research, which was independently commissioned by Oxford Economics, the report examines the current state of bilateral trade explores the impact of a successful USMCA renegotiation and a USMCA breakdown against status quo. Among the findings, the report highlights that:
- Integration has overwhelmingly generated economic benefits for American and Canadian businesses, workers and consumers.
- Manufacturing industries are the most impacted across all scenarios.
- Tariffs ultimately do not grow the American manufacturing sector, nor do they shrink the US trade deficit.
The report reinforces that the US and Canada share a deeply integrated relationship and tariffs impact both parties. As policymakers continue through USMCA and bilateral negotiations, the CABC encourages both governments to prioritize collaboration, predictability, and policies that promote shared prosperity.
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“The choices made today will determine North America’s economic competitiveness for decades to come,” Burke added. “Businesses on both sides of the border are looking for predictability.”
The report is intended to serve as a resource for policymakers, business leaders, and stakeholders as they work together to strengthen one of the world’s most successful economic relationships.
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