Canada's Industry Minister Melanie Joly said Tuesday that the government has prepared for every possible outcome after reports suggested the U.S. plans to withdraw from CUSMA [1].

A potential U.S. exit from the Canada-United States-Mexico Agreement would threaten the stability of North American trade and disrupt integrated supply chains across the continent.

Speaking in Quebec, Joly addressed the news report regarding the trade deal's future. She said that the Canadian government has been actively working on contingency plans to mitigate the impact of such a decision [1].

"We've been ready for every single scenario. We've been working at this," Joly said [1].

The minister emphasized that her administration remains focused on national economic resilience and growth despite the uncertainty surrounding the agreement. She said that the government is operating under a specific directive to maintain the country's economic trajectory [1].

"We have a mandate from the people to build Canada, to build Canada strong," Joly said [1].

While the reports of a U.S. withdrawal have caused concern among trade partners, Joly did not provide specific details on the nature of the contingency plans. The Canadian government continues to monitor the situation in the U.S. to determine the official status of the agreement [1].

The North American trade bloc serves as the foundation for thousands of businesses that rely on the preferential tariffs, and rules of origin established by the treaty. A sudden withdrawal by the U.S. would likely force Canada and Mexico to renegotiate their own terms or seek alternative trade frameworks to prevent economic volatility [1].

“"We've been ready for every single scenario."”

The potential collapse of CUSMA would signal a shift toward protectionism in the U.S., potentially destabilizing the automotive and agricultural sectors that rely on seamless cross-border movement. Canada's public insistence on readiness is an attempt to project economic stability to markets and reassure domestic industries that a fallback strategy exists if the primary trade framework fails.