I am fielding a lot of questions about President Trump’s direct announcement today to place a 50% tariff on autos from Canada contrast against the USMCA (CUSMA) and other trade matters.

First, for President Trump this is not political; it’s pure economics.  Donald Trump has been talking about this issue for 40+ years. Trump has held the same position about American manufacturing and exploitation of U.S. industrial jobs long before he officially became a politician.  President Trump is not looking at the politics of the matter, nor does the midterm election play a part of the consideration.

This is the economics of the thing, politics be damned, and the Canadian politicians have no concept of how structurally important this is to Donald Trump personally.  For Canada it’s political, for Trump it’s business – deliberate, direct and consequential business.  There are trillions at stake.

VIA TRUTH SOCIAL – “Canada has been ripping off the United States of America for years. Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries. Not sustainable, and NOT ANYMORE! On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%. Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer! On Trade, and in other ways, also, they are among the worst Nations in the World to deal with. They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US! They do 95% of their business with the U.S., with us, the exact opposite! Thank you for your attention to this matter!”

~ President DONALD J. TRUMP

The second aspect to the inbound questions center around the USMCA (CUSMA) and anticipated legal challenges to the 50% tariffs in violation of the USMCA trade agreement.  Those questions are coming from people who don’t understand the first point above, in combination with what we have outlined for years, President Trump does not want the multilateral USMCA to remain.  Trump has been very direct about this.

As to the legality of the matter. If you accept the USMCA is not valued as a reciprocal trade tool by the U.S. administration, then you set yourself up to understand there are two options available.

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As most would anticipate, Ukraine President Volodymyr Zelenskyy has rejected the request for a Ukraine election made by former Defense Minister Mykhailo Fedorov.

Zelenskyy noted that Fedorov himself might challenge the ‘new democracy‘ regime of Zelenskyy, and therefore the risks are too great.

(via Politico) – Ukraine President Volodymyr Zelenskyy on Saturday flatly rejected a call by his former defense chief to send the country to the ballot box.

“I believe that during a war like this, elections in general pose major risks,” Zelenskyy told journalists — including POLITICO — behind closed doors.

A vote “right now would be a tsunami for the state, one that would divide Ukraine,” the Ukrainian president said. He added that his strategy is “to bring the country to the end of the war and preserve an independent and sovereign state.”

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An interesting soundbite from Council on Foreign Relations (CFR) President Mike Froman who distills down the main point of contention.  Essentially, the U.S. position is to demand a common trade approach toward China and the U.S. delegation gave Canada an ultimatum within the deal proposed, us or them.

If Mike Froman is correct, Mark Carney chose China. [X LINK] Video Below:

Mike Froman, former US Trade Rep on CNN yesterday afternoon “I think the new issue is that the Trump administration is pressing Canada, as well as other countries, to adopt a common approach vis a vis China, whether it’s a common external tariff or export controls, or ensuring… pic.twitter.com/RoTIXMZs3k

— cbcwatcher (@cbcwatcher) August 23, 2026

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There are a few that ankle bite about President Trump focusing on trade agreements as if it is foreign policy and not economic policy for America that is the #1 factor in our future.  I do not see value in such nonsense.  Economic security is national security – period.

After a day of Canadian government officials pushing a twisted narrative about their position regarding U.S-Canada trade, President Trump puts forth a simple truthful statement:

[SOURCE]

Additionally, U.S. Trade Representative (USTR) Jamieson Greer talked to the New York Times about the current issues that created the fracture in negotiations. I will outline those aspects below.

CTH readers will note that in 2025 and again earlier this year, our prediction was the USMCA (CUSMA) would dissolve in/around early July, and the U.S. would ultimately end up withdrawing completely in/around August of 2026.  I would be remiss if I did not note current events are following a very predictable path.

Trade issues with Canada are irreconcilable against the entitlement that underpins the Canadian economic mindset.  You will note these “friction points” do not exist with Mexico; there is a cultural and brutally factual reason for this.

Canada feels entitled to maintain a trade relationship with the USA as if they are a state in our union.  However, just like the abusive mentality in any toxic relationship, Canada refuses any reciprocity.  Canada maintains protectionist tariffs, non-tariff barriers, quotas against U.S. goods and one-way restrictions on banking, finance, intellectual property and media. The latter part they call “cultural” protection.

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Moments ago, Canadian Prime Minister Mark Carney delivered the news via his X account.  Discussions between the U.S and Canada have collapsed. All trade representatives are called back home.  The 50% U.S. tariffs against Canada are now in effect.  A trade war begins.

First, read the statement from Prime Minister Mark Carney, with the understanding that Carney is making the first statement because the news is exceptionally bad for Canada.  Worse than bad.

[SOURCE]

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Vice President JD Vance gave a speech today from his hometown in Middletown, Ohio.  The theme of the speech was about U.S. jobs, economic nationalism and the rebuilding of American industrial strength.

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President Donald Trump announced today that import quotas on beef will be lifted for a period of 90-days in an effort to remove pricing stress on cattle and give U.S. ranchers an opportunity to restore herd head count.

The short-term effort is directed to lower consumer prices, while in the longer term the U.S. cattle industry undergoes market-based reforms to eliminate monopolistic industrial practices.

PRESIDENT TRUMP – “Today, I concluded a deal to substantially lower the price of ground beef for working American families. As everyone knows, under President Biden, beef prices soared at their fastest rate and the American beef herd fell to its smallest size in modern history. As we work to rebuild this herd and help our ranchers, for the next 90 days, the United States will allow up to 300,000 metric tons of product for ground beef to be imported with no out of quota tariff. We have a commitment that this beef will be sold at 25 percent below current market prices. This deal will reduce prices for Americans while giving space for our Great American Beef Herd to grow again. Thank you for your attention to this matter!” ~ President DONALD J. TRUMP

President Trump gave remarks about the issue during a tarmac presser en route to South Carolina. [PROMPTED]

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Tonight, President Donald Trump will appear at a rally in South Carolina to support the special election candidacy of Darline Graham.  The anticipated start time of President Trump’s speech is 7:00pm ET with livestream links below.

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Many people, CTH included, hoped Ed Martin would be a man inside the DOJ machine that could bring accountability for prior govt wrongdoing.  That hope never materialized.  Today, President Trump announces Mr Martin’s departure.

[SOURCE]

🎶…”Where have you gone, Joe diGenova? A nation turns its lonely eyes to you”…🎶

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Supreme Court Chief Justice John Roberts has stayed (removed) the lower court injunction blocking the White House from proceeding with Ballroom construction.  The White House can now continue building the ballroom and national security complex.

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