The Globe and Mail reports in its Friday, June 27, edition that as U.S. President Donald Trump waged trade wars, Canada hoped for benefits from the United States-Mexico-Canada Agreement (USMCA). The Globe's Jason Kirby writes that early signs for Canada's manufacturing sector, however, are not encouraging. After imposing a 25-per-cent tariff on imports from Canada and Mexico, Mr. Trump exempted USMCA-compliant goods. Last year, fewer than 40 per cent of goods Canada shipped to the U.S. met USMCA rules-of-origin, but Bay Street economists believe over 80 per cent could qualify with additional paperwork, providing a competitive advantage with lower average tariffs. In April, the compliance rate for Canadian exports surged to 60 per cent. A new report by Capital Economics states that the increase in exports was primarily due to energy exports becoming USMCA-compliant. In contrast, compliance rates for other manufacturing sectors either remained steady or declined. Canadian exporters are particularly affected, with non-compliant shipments to the U.S. dropping by nearly half this year. This situation could lead to higher tariff rates for Canada from the U.S., potentially resulting in lower economic growth than anticipated.