President Donald Trump has expressed ambivalence about the U.S.-Mexico-Canada Agreement (USMCA), suggesting he might not renew the trade pact and is open to renegotiating it or pursuing separate bilateral deals with Canada and Mexico. The USMCA, which governs a significant portion of North American trade, is subject to a mandatory six-year review in 2026.
During discussions, Trump indicated he had no preference between extending the trilateral agreement or negotiating individually with Canadian Prime Minister Mark Carney and Mexican leaders. His administration, through U.S. Trade Representative Jamieson Greer, has outlined priorities for a potential 2026 renegotiation. These priorities include addressing "structural issues" and enhancing economic security alignment on tariffs, export controls, and investment screening.
Greer has suggested that separate, nonbinding bilateral trade frameworks could replace the existing continental agreement, citing differences in economic relationships with Canada and Mexico. Specific concerns raised include strengthening rules of origin for non-automotive industrial goods and modifying Mexican policies that may allow products from China and other non-USMCA countries into the free trade area. The administration also seeks mechanisms to penalize the offshoring of U.S. production to Mexico or Canada due to regulatory arbitrage.
