United States Declines Renewal of USMCA Trade Pact

The United States announced it will not renew the U.S.-Mexico-Canada Agreement (USMCA) in its current form, allowing the trilateral deal to remain in force only until its scheduled expiration in 2036. U.S. Trade Representative Katherine Tai (or Jamieson Greer as quoted) said the decision follows the six‑year joint review, and while Mexico and Canada expressed willingness to continue negotiations, the U.S. is seeking a new framework that could include stricter automotive rules of origin, higher U.S. content requirements and tighter controls on steel, aluminum and other goods.

The move reflects President Donald Trump's criticism that the USMCA has not reduced trade deficits with its northern neighbours or stemmed American deindustrialisation. Since the deal took effect in 2020, the U.S. trade deficit with Mexico and Canada has grown, and manufacturing’s share of GDP has slipped. The administration indicated it may pursue bilateral talks with Mexico and Canada while using annual reviews to push specific revisions, signaling a shift in North American trade policy that could affect tariffs, supply‑chain alignment and regional manufacturing.