US President Donald Trump raised tariffs on Canadian products to 35%, but most goods are exempt due to the USMCA agreement. The USMCA allows for tariff-free trade for compliant goods, benefiting Canada and Mexico. Despite the tariffs, Canadian exports remain largely unaffected, with 100% of energy exports compliant. Canadian officials express optimism about trade relations, although concerns about the potential renegotiation of the USMCA persist. The economic impact of tariffs varies by industry, with some sectors facing significant challenges.