RBC Economists Warn of Trade Risks After US Decision on CUSMA

RBC economists Claire Fan and Nathan Janzen have published an analysis on the implications of the US decision not to extend the Canada-United States-Mexico Agreement (CUSMA). The assessment focuses on the resulting trade risks for Canada and the persistence of uncertainty in cross-border commerce.

The decision raises concerns about the stability of North American trade relations, which could affect business investment and supply chains. The economists note that prolonged uncertainty may weigh on economic outlooks for Canada.

This development adds to existing headwinds for the Canadian dollar and trade-dependent sectors.