U.S. Declines to Extend USMCA, Starting Ten‑Year Countdown for North American Trade Pact

The Trump administration announced that the United States will not renew the United States‑Mexico‑Canada Agreement (USMCA), ending the automatic extension that kept the pact in force until 2036. The decision triggers a ten‑year countdown during which the agreement will remain subject to annual reviews, and could ultimately be terminated if the three countries do not reach a new renewal.

U.S. trade representative James Greer said the United States is not willing to renew the USMCA in its current form, citing trade deficits and a desire to bring more production back to America. The United States will pursue bilateral talks with Mexico, focusing on stricter rules of origin for automobiles and other goods, while Canada has been left out of the initial negotiations. Canadian trade minister Dominique LeBlanc affirmed that the USMCA stays fully in force until 2036 and that Canada remains ready to resolve outstanding tariff disputes.

The move creates uncertainty for businesses that rely on the integrated North‑American supply chain, raising the risk of new tariffs, supply‑chain disruptions, and investment reconsiderations across key sectors such as automotive, agriculture, steel and aluminum.