As Prime Minister Mark Carney charts a new course in Canada–U.S. trade policy, his decision to eliminate most tariffs under CUSMA sparked both praise and backlash—revealing deeper anxieties about Canada’s economic leverage and labour protections. Meanwhile, the U.S. pushes aggressive drug pricing reforms that are drawing global attention, and Canada’s own pharmacare ambitions face mounting pressure from physicians, provinces, and policy critics.
Carney Removes Most CUSMA Tariffs Amid Mixed Reactions
Prime Minister Mark Carney announced that Canada will eliminate tariffs on most U.S. goods covered under the Canada-United States-Mexico Agreement (CUSMA) starting September 1, 2025, restoring tariff-free trade for over 85% of bilateral commerce. Exemptions remain for steel, aluminum, and auto, reflecting Ottawa’s ongoing industrial strategy and preparations for the upcoming CUSMA review.
Carney added that his government is focused on diversifying trade partnerships, protecting workers, and helping industries adapt to new markets. He highlighted these priorities in Montréal during a meeting with business leaders, underscoring plans to expand trade and drive sustainable economic growth.
Following a call with U.S. President Donald Trump, Carney confirmed the decision on tariffs was tied to both leaders agreeing to intensify trade discussions.
The Canadian Federation of Independent Business welcomed the move, citing relief for small firms. However, critics, including Conservative Leader Pierre Poilievre, the Canadian Steel Producers Association, and labour group Unifor, warned that the decision undermines workers and weakens Canada’s negotiating power. Canada-U.S. Trade Minister Dominic LeBlanc said removing retaliatory tariffs on CUSMA-compliant U.S. goods positions Ottawa to negotiate more effectively on sectoral duties, and ongoing talks with U.S. officials aim to secure investment opportunities and bilateral arrangements that ease pressure on Canada’s most integrated strategic sectors like steel, aluminum, and autos.
Reactions were similarly divided among provincial leaders. Ontario Premier Doug Ford told Carney that any deal with the U.S. must provide relief for sectors affected by tariffs, including steel, auto, forestry, and copper, or else Canada should respond strongly, while also prioritizing the use of Ontario steel in major domestic projects. Manitoba Premier Wab Kinew also criticized the decision to lift retaliatory tariffs, warning it signals an “elbows down” approach and calling for stronger measures to protect Canadian interests, though some Manitoba business groups, including the Chambers of Commerce and Canadian Manufacturers and Exporters, cautiously welcomed the move as potentially reducing costs for distributors and food producers.
Trump Pushes Global Drug Pricing Reform Ahead of Deadline
The Trump administration is pushing a plan to link U.S. drug prices to those in lower-paying developed nations, pressuring pharmaceutical companies with potential tariffs and fueling debate over entrenched pricing systems as the September 29 deadline approaches.
Previously, the administration sent letters to major pharmaceutical companies demanding they offer these prices to Medicaid patients by a specified deadline or face escalating tariffs on imported medicines, which could reach up to 250%.
Industry leaders, including Sandoz CEO Richard Saynor, told Axios that U.S. tariffs risk making the generics market unsustainable, urging the Trump administration to reform patents and streamline FDA approvals instead of relying on penalties. He warned that excessive duties could force generics off the U.S. market, highlighting how low drug prices already threaten antibiotics and other essential medicines.
Amid the policy debate, independent global market access consultant Neil Grubert highlighted a Washington Times article by Peter Navarro outlining President Trump’s “two-term pharmaceutical plan,” centred on reshoring drug production, tariff policy, and strengthening supply chain resilience. The plan includes replenishing the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR), prioritizing federal purchasing of U.S.-made medicines, and accelerating advanced manufacturing with federal support.
Canada’s Pharmacare Debate Rekindled by Physicians and Provincial Critics
The national pharmacare conversation shows no signs of fading. In an opinion piece for The Hill Times, emergency physician Bernard Ho described patients forced to skip vital medications due to cost, choosing between groceries and blood pressure pills and new immigrants rationing insulin because they cannot afford medications. He argued that Canada’s repeated delays on national pharmacare leave vulnerable populations at risk and highlighted the urgent need for action.
The Ontario New Democratic Party (NDP), led by Marit Stiles, also criticized the Ontario government for prioritizing private insurance over a universal model. In a social media post, Stiles raised concerns regarding the government’s approach to healthcare.
According to Stiles, while Ontarians face difficulties in affording prescription medication and other health-related expenses, the Health Minister of Ontario is allegedly prioritizing the interests of insurance companies over the establishment of universal health coverage for the province’s residents. Stiles calls for immediate action, advocating for an urgent pharmacare deal to alleviate these challenges.
Meanwhile, the Canadian Health Policy Institute (CHPI) announced the upcoming release of Building Better Pharma Policy in Canada by Brett J. Skinner, PHD, which critiques current pharmaceutical policies for limiting access and innovation. The book, set for fall 2025, proposes reforms aimed at improving patient outcomes and long-term sustainability.
Canada’s Healthcare System Under Fire Amid Delays and Inefficiencies
An opinion article from the Financial Post highlighted critical issues plaguing Canada’s healthcare system, which is described as “dysfunctional and overwhelmed” due to its status as a government-run monopoly.
The article argued that widespread issues stem from the bureaucratic nature of the government-run system and the absence of private-sector competition, underscoring that Canada’s current healthcare system structure not only incurs high financial costs but also exacts a “tragic toll” on individuals seeking timely and effective medical care due to systematic inefficiencies.
In contrast, in a recent announcement, Maggie Chi, Parliamentary Secretary to the Minister of Health, communicated the allocation of over $10 million in funding aimed at encouraging healthy lifestyles among Canadians.
This initiative involves various organizations such as the Centre for Addiction and Mental Health (CAMH), the Lung Association of Nova Scotia and Prince Edward Island, McMaster University, and more, intended to develop programs that promote nutritious eating, active living, and smoking cessation, with the goal of enhancing the quality of life and reducing chronic disease risk.
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