07/07/26 Afternoon CommStock Report – Oh! Canada and Mexico

Part 1 of 2 USMCA Engagement Despite tariffs and trade fights… US, Canadian and Mexican trade is still being driven primarily by the USMCA (called CUSMA in Canada). This trade deal generates 30% of global GDP. Around 85% to 87% of all Canadian and Mexican imports into the United States enter duty-free under USMCA-compliant rules. Tariffs do not apply to goods imported from Canada and Mexico as long as they claim and qualify for the USMCA preference by meeting the required rules of origin. Current tariffs affecting Canadian and Mexican exports into the U.S.- 10% tariff on non-CUSMA compliant goods (effective February 24, 2026). Effective June 8, 2026, section 232 tariffs on aluminum, steel and copper: U.S. sourcing incentive: A reduced 10% tariff may apply if at least 85% of steel/aluminum content (by weight) is U.S.-sourced and meets U.S. processing requirements (melted, poured, smelted, or cast in the U.S.). Other tariffs: 10% tariff on non-CUSMA compliant potash and energy products (effective April 2, 2025). 25% tariff on all cars and trucks not built in the U.S. (effective April 2, 2025). 35% tariff on softwood lumber (effective October 14, 2025). 25% tariff on upholstered wooden products and kitchen/bathroom cabinets and vanities…