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Tipsheet

Trump Admin Announces Major Decision Regarding USMCA

Trump Admin Announces Major Decision Regarding USMCA
AP Photo/Alex Brandon

The United States does not plan to renew the U.S.–Mexico–Canada Agreement (USMCA) “in its current form,” the Trump administration announced on Wednesday afternoon. 

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“The Agreement between the United States of America, the United Mexican States, and Canada (USMCA or “Agreement”) requires the USMCA Free Trade Commission, composed of government representatives of each Party, to conduct a joint review of the Agreement on July 1, 2026,” Ambassador Jamieson Greer, the United States Trade Representative, said in a statement, adding that the three countries held a virtual meeting on Wednesday.

“The United States will continue to engage with Mexico and Canada to address the Agreement’s shortcomings and our trade deficits with these countries,” Greer added. “However, the Agreement remains in force pending resolution of these issues or until the Agreement’s termination.”

He noted that Mexico and the U.S. will hold talks later this month related to the USMCA review. 

A senior Trump administration official confirmed that the trade agreement, which was signed during the first term of President Donald Trump, is still in effect, but it would expire in exactly a decade if it is never renewed.

“More importantly, the other trade and tariff measures the president has imposed to some degree have superseded many elements of the USMCA already,” the official said on a call with reporters.

“We are focused on ensuring that the USMCA benefits U.S. manufacturers, farmers, ranchers, workers, service suppliers, businesses of all sizes. And while there has been some progress over the past year, there is more work to do,” the official continued.

The move gained support from Republicans.

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“I wholly support USMCA but we cannot blindly renew this deal without fixing key issues like Canada’s treatment of our wineries, dairy farmers, and our fruit and vegetable producers,” Rep. Claudia Tenney (R-NY) posted to X. 

However, former Mexican Ambassador to the U.S., Arturo Sarukhan, was more critical of the decision, saying that “the uncertainty that this move by the Trump Administration will bring to North America's geopolitical traction and economic security and North American growth and competitiveness is nothing short of astounding, and, in World Cup terms, a huge own-goal!”

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