Trump Administration Declines to Renew USMCA in Current Form
President Donald Trump has decided not to extend the U.S.-Mexico-Canada Agreement (USMCA) in its current form, choosing instead to seek separate trade agreements with Canada and Mexico, according to a Trump administration official cited by FOX Business.
The decision came as the three countries reached the deadline for the agreement’s required six-year review. U.S. Trade Representative Jamieson Greer said representatives from the United States, Canada and Mexico met virtually Wednesday to discuss the trade pact’s operation. Following that meeting, Greer confirmed that the United States did not agree to renew the USMCA as written.
The USMCA, negotiated during Trump’s first term, replaced the North American Free Trade Agreement. It was signed in December 2019 and took effect on July 1, 2020. Although the agreement is scheduled to remain in force until 2036, the current review process allowed the member countries to consider whether to extend it.
Greer said the agreement remains active while the parties work through unresolved issues or until it is terminated. He added that the United States will continue discussions with Canada and Mexico about what the administration describes as shortcomings in the pact, as well as U.S. trade deficits with both countries.
The administration official said Trump is expected to pursue individual trade deals with Canada and Mexico that could last up to 10 years. The United States is scheduled to meet with Mexico during the week of July 20 for another round of bilateral negotiations related to the USMCA review.
Canada and Mexico are among the United States’ largest trading partners. In 2024, they were the top two markets for U.S. goods exports, while Mexico was the largest source of U.S. imports and Canada ranked third. Trump previously imposed 25% tariffs on both countries, prompting negotiations and uncertainty about USMCA’s future.