Advocacy News – Aug. 28, 2026
What’s happening: After appearing close to an agreement, U.S.-Canada trade negotiations broke down late last week, escalating tensions and bringing a new round of tariffs, counter-tariffs and uncertainty for businesses on both sides of the border.
Where things stand: The U.S. has imposed new 50% tariffs on roughly $20 billion in Canadian goods. Canada has announced dollar-for-dollar counter-tariffs on approximately $20 billion in U.S. goods beginning Sept. 8.
No new formal negotiations have been announced, although both countries have indicated there could be a path back to the table.
Key sticking points include:
- Autos and trucks: Disagreements over tariff treatment for Canadian-made vehicles, including medium- and heavy-duty trucks, as well as how Canadian parts, steel and other content would be treated.
- Dairy and market access: Longstanding U.S. concerns over Canada’s dairy import system and access for American products.
- Broader trade rules: U.S. officials have raised concerns that Canada could become a pathway for Chinese and other foreign goods to circumvent higher U.S. tariffs. Canada, meanwhile, objected to proposed provisions it said could constrain future trade agreements and affect domestic policies.
Why it matters: For Michigan, the stakes are especially high. Michigan and Canada share deeply integrated supply chains, particularly in automotive, advanced manufacturing and agriculture. Products and components routinely cross the border multiple times before reaching consumers.
This trade impasse can mean higher costs, supply chain disruptions and more difficult investment and planning decisions for Michigan employers, particularly small businesses with less ability to absorb sudden cost increases.
What we’re saying: The Michigan Chamber continues to urge U.S. and Canadian leaders to return to the negotiating table and work toward a durable agreement that provides greater certainty for businesses, workers and consumers.
- Michigan’s economic relationship with Canada is too important to allow prolonged uncertainty to become the norm. A competitive North American economy depends on reliable trade rules, efficient cross-border commerce and a strong U.S.-Canada partnership.
We need your input: How are tariffs and changing U.S.-Canada trade relations affecting your business? Take our brief survey to help the Michigan Chamber understand the real-world impact on Michigan employers and inform our advocacy with policymakers.
Go deeper: Against this backdrop, Michigan State University’s Canadian Studies Center will host its 2026 CN Forum: “Accelerating Innovation through Critical Infrastructure” on Sept. 16 at the MSU Henry Center in East Lansing.
- The free forum brings together business, policy, academic and government leaders from both sides of the border, with discussions on Great Lakes-St. Lawrence maritime infrastructure, next-generation fuels and mobility, and automotive manufacturing, trade and competitiveness.
The MI Chamber is pleased to partner with the University to share this timely opportunity with Chamber members.
Learn more and register here.