Three ways Trump’s trade war might impact Canadian Medicare
U.S. President Trump has increased tariffs on Canada’s steel and aluminum exports, risking thousands of jobs. Prime Minister Carney says there are ongoing discussions between the two countries on charting a new economic and security deal. But very little is known about what is included in the negotiations, raising concerns about impacts on Canadian Medicare.
Transparency concerns
“These conversations appear to be happening without the transparency that Canadians were promised and that your party has committed to in writing,” Interim NDP leader Don Davies wrote in a letter to the Prime Minister.
Public health care experts, including our colleagues at Canadian Doctors for Medicare, are beginning to raise the alarm about the harmful impact of the Canada-U.S. trade war on Canada’s public health care system.
Key threats:
1. Privatization pressure
The U.S. may push for removal of trade protections that limit private, for-profit American companies from entering Canadian health care markets. A recent example is the acquisition of LifeLabs by U.S.-based Quest Diagnostics, which led to labour issues affecting patient care.
“In the next renegotiation of trade agreements, there may be pressure to remove key provisions of CUSMA [the Canada-United States-Mexico Agreement] which currently limit U.S. industry from extending its reach across the border into patient care,” said Andriy Katyukha, MD, an Internal Medicine Physician at Toronto General Hospital.
2. Rising drug prices
U.S. pharmaceutical companies are lobbying to weaken Canadian drug pricing regulations. This includes increasing patent protections and undermining the Patented Medicine Prices Review Board, potentially making medications less affordable for Canadians.
Even more, Canada imports $8.76 billion annually in prescription drugs from the U.S. where they are manufactured using ingredients from China and India. China has been targeted by Trump’s tariffs, making it more expensive to import these essential ingredients.
“To the extent that tariffed drugs go from China to the U.S. to Canada, the cost of both publicly and privately funded drug plans will increase,” says Dr. Joel Lexchin, Professor Emeritus of Health Policy and Management at York University, and a board member of both the Canadian Health Coalition and Canadian Doctors for Medicare.
“We can hope that any tariffs — on Canada or China — will be only temporary and we can avoid the ongoing effects on both access to prescription drugs and their price. But given Trump’s volatility and unpredictability, we can’t rely on that outcome,” he said.
3. Health data vulnerability
Canada’s reliance on U.S. vendors for digital health tools exposes it to data privacy risks. U.S. negotiators may push to lower Canadian data protections, allowing American firms to profit from sensitive health information.
“We must advocate for stricter privacy standards and data collection legislation and support Canadian-made solutions that decrease reliance on the U.S.,” said Dr. Katyukha.
These threats—privatization, drug cost increases, and data exploitation—risk compromising Canada’s health care sovereignty and core values. Canadians must urge their government to resist these pressures and protect the public system.
