How major global and economic sectors are reacting to U.S. tariff policy

Tariffs remain top of mind for many across the economic landscape. The effects have been felt by building industries in terms of increased costs, disrupted supply chains and economic uncertainty.

Last week’s webinar, “Trump's Tariffs: Transition or Turmoil?” hosted by Politico and welcoming journalists from across the globe focused on the near-term effects of tariffs, how trade environments have shifted in response, and what the next steps of the Trump Administration might be.

Details of U.S./Canada trade likely to be decided in USMCA renegotiation

Ari Hawkins, a Politico trade reporter, says that the recent meeting between newly-elected Prime Minister Mark Carney and President Donald Trump represents a potential “easing of tension.” While Trump has repeated his “51st state” rhetoric, and Carney stated in the introductory meeting that “Canada is not for sale,” Hawkins still finds the administration’s treatment of Carney to be more favorable when compared with former Prime Minister Trudeau. “For Carney himself, the Trump administration and Trump himself has taken a much calmer tone. It's been more conciliatory that was the goal of this meeting to level set to make sure that they had a path forward for negotiations, and in that sense, both sides did what they needed to do,” he says.

In terms of moving forward on a substantive trade agreement, Nick Taylor-Vaisey, Politico’s Ottawa bureau chief, noted that Trump has underscored that the USCMCA is a “good deal for everybody,” and offered a basic timeline of a review in 2026 or “within the next year.” “So maybe he's open to starting those talks earlier, which a lot of Canadian officials want, but we're waiting for details there,” Taylor-Vaisey says. Hawkins agreed that the administration is likely looking to the USMCA renegotiations to “really get into the weeds of a lot of these tariff disputes" with Canada.

Section 232 tariffs likely to remain and expand

In February, the Trump administration restored 25% tariffs on steel and increased the tariff on aluminum to 25% as well, both actions based on Section 232 of the Trade Expansion Act of 1962. The administration also removed exemptions from previous tariffs on these materials. Hawkins says that further Section 232 investigations could lead to new tariffs in the coming months on a range of products, including semiconductors, lumber and critical minerals.

While the administration might make exemptions on materials like lumber before those investigations are completed, Hawkins says, they are still likely to face the Section 232 tariffs as part of the administration’s focus on incentivizing manufacturing and development within the U.S. Taylor-Vaisey says that given it’s a time of “flux” for Canada, it’s hard to say what Canada might do with its lumber in terms of new trade agreements.

Unlike the tariffs levied on the basis of the International Emergency Economic Powers Act, the Section 232 tariffs are legally tested, says Hawkins, and levied through the Department of Commerce. “It's been legally tested, meaning that it could be more difficult for a judge to overturn that, even though it would still be on the basis of a national emergency,” he says.