With negotiations to extend CUSMA beyond 2036 set to begin next year, an RBC report says preserving the pact is “critically important” as North American supply chains remain deeply integrated. Canadian exporters continue to benefit from broad CUSMA exemptions, with at least 95% of U.S. goods exports to Canada in 2024 covered with zero rate duties. The study notes removing these exemptions could push the average effective U.S. tariff rate above 20%, a move that would be “particularly bad for U.S. manufacturers that are already hard hit” by existing trade measures.