The United States has said it will not renew the USMCA trade agreement with Canada and Mexico in its current form, raising fresh uncertainty over the future of North America’s landmark trade pact.
The U.S. Trade Representative’s office said the agreement remains in force for now, but Washington is seeking changes before backing a long-term renewal. The decision comes as the pact enters its scheduled six-year review process. (EL PAÍS English)
USMCA, which replaced NAFTA in 2020, governs trade among the United States, Canada, and Mexico, covering sectors such as automobiles, agriculture, energy, manufacturing, and digital commerce. The agreement supports one of the world’s most integrated regional supply chains.
President Donald Trump’s administration has cited unresolved trade concerns, including deficits with Canada and Mexico, as a reason for refusing to extend the pact as it stands. (The Guardian)
The move does not immediately terminate USMCA. Instead, it pushes the three countries into continued negotiations and possible annual reviews unless a revised agreement is reached.
Businesses across North America are expected to watch the talks closely, as prolonged uncertainty could affect investment decisions, supply chains, tariffs, and cross-border trade.
Canada and Mexico have both signaled interest in preserving the agreement while addressing outstanding concerns. For now, the pact remains active, but its long-term future depends on whether the three governments can reach a new understanding.
