Trump’s tariff hike still hits goods that are not covered by the USMCA. The Bank of Canada forecast this week that up to 95 percent of Canadian exports could qualify for exemptions under that agreement. Meanwhile, the share of Canadian companies claiming tariff exemptions has soared.

A U.S.-Canada trade agreement remains elusive as high tariffs fuel tensions. Prime Minister Mark Carney and negotiators emphasize the importance of a favorable deal while coping with U.S. imposed tariffs on crucial Canadian sectors.

U.S. Commerce Secretary Howard Lutnick said on Thursday that a 35% tariff on all Canadian goods not covered by the U.S.-Mexico-Canada trade agreement is still "surely in the cards," ahead of an Aug. 1 deadline imposed by President Donald Trump.