WASHINGTON, Aug. 10, 2026 /PRNewswire/ — The Canadian American Business Council (CABC) announces the release of its latest economic report, Economic Impacts of US-Canada Tariff Escalation Under the USMCA, providing a comprehensive analysis of the bilateral commercial relationship and the likely economic consequences of three distinct potential outcomes of USMCA negotiations.

As Canada and the United States navigate a pivotal moment in the bilateral relationship, including the ongoing review of the United States-Mexico-Canada Agreement (USMCA), the report underscores that the USMCA supports economic growth, affordability, and job creation.

“Successful renegotiation of USMCA would create an additional 137,000 American jobs and 98,000 Canadian jobs in 2027 relative to the status quo. By contrast, the breakdown of USMCA would be accompanied by 214,000 and 102,000 fewer jobs, respectively […]” the report reads.

“The US-Canada relationship is one of the most integrated economic partnerships in the world, supporting millions of jobs, driving innovation, and strengthening our collective competitiveness,” said Beth Burke, Chief Executive Officer of the Canadian American Business Council. “This report highlights the extent of integration and how we are stronger together.”

Drawing on extensive quantitative analysis and research, which was independently commissioned by Oxford Economics, the report examines the current state of bilateral trade explores the impact of a successful USMCA renegotiation and a USMCA breakdown against status quo. Among the findings, the report highlights that:

• Integration has overwhelmingly generated economic benefits for American and Canadian businesses, workers and consumers.
• Manufacturing industries are the most impacted across all scenarios.
• Tariffs ultimately do not grow the American manufacturing sector, nor do they shrink the US trade deficit.

The report reinforces that the United States and Canada share a deeply integrated relationship and tariffs impact both parties. As policymakers continue through USMCA and bilateral negotiations, the CABC encourages both governments to prioritize collaboration, predictability, and policies that promote shared prosperity.

“The choices made today will determine North America’s economic competitiveness for decades to come,” Burke added. “Businesses on both sides of the border are looking for predictability.”

The report is intended to serve as a resource for policymakers, business leaders, and stakeholders as they work together to strengthen one of the world’s most successful economic relationships.

Read the full report here.

About the CABC: Established in 1987, the Council is the leading non-profit, non-partisan, issues-oriented organization dedicated to fostering dialogue between the public and private sectors in Canada the US. Members are key business leaders and stakeholders from both sides of the border ranging from entrepreneurs to best name brands in the world. Collectively, CABC members employ about over 11.6 million people and have annual revenues of close to $6 trillion. For more information about the CABC and its leadership team, please visit our Who We Are section. 

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SOURCE Canadian American Business Council