WASHINGTON — President Donald Trump's administration declined on Wednesday to renew the United States-Mexico-Canada Agreement (USMCA) in its current form, triggering a process of annual reviews that could ultimately lead to the North American trade pact expiring in 2036 unless the three countries agree on revised terms.
The decision followed the agreement's first mandatory six-year joint review and was announced by U.S. Trade Representative Jamieson Greer after virtual talks with Canadian and Mexican officials. Under the agreement's sunset provisions, the move does not terminate the USMCA immediately. Instead, the pact remains in force while the three governments conduct annual reviews over the next decade.
"The United States did not agree to renew the USMCA in its current form," Greer said in a statement, adding that Washington would continue discussions with Canada and Mexico to address what it described as shortcomings in the agreement and persistent U.S. trade deficits with its North American trading partners.
The USMCA, negotiated during Trump's first presidential term to replace the North American Free Trade Agreement (NAFTA), governs roughly $1.6 trillion in annual trade among the three countries. The administration has argued that revisions are needed to strengthen North American manufacturing, tighten rules of origin for industrial and automotive products, and reduce U.S. trade imbalances.
Mexico's Economy Minister Marcelo Ebrard acknowledged U.S. concerns but cautioned against changes that could undermine Mexico's automotive sector, according to officials familiar with the discussions. Canada said it remained prepared to continue negotiations, including talks related to U.S. tariffs affecting Canadian exports.
Industry groups and agricultural organizations urged the three governments to preserve the trilateral framework, warning that prolonged uncertainty could disrupt integrated North American supply chains, discourage investment and raise costs for manufacturers and consumers. Auto industry representatives have expressed concern that stricter domestic content requirements could increase vehicle production costs, while farm organizations emphasized the importance of maintaining stable access to export markets in Canada and Mexico.
Administration officials said the United States intends to continue negotiations with both neighboring countries, with talks between U.S. and Mexican officials expected later this month. The agreement will remain in effect during the review process unless one of the parties withdraws or a revised accord is reached before the current pact's scheduled expiration in 2036.
