U.S. switches USMCA to annual review schedule, raising uncertainty for Canada and Mexico

The United States announced it will not extend the Canada‑United States‑Mexico Agreement (USMCA/T‑MEC) for another 16 years. Instead, the pact will remain in force only until 2036 under a mechanism of annual reviews, a process the U.S. says will run for up to ten years before the agreement expires if no further extension is reached. Canadian Trade Minister Dominic LeBlanc said the change leaves “no more predictability about the annual review process because this is somewhat uncharted territory.” Mexican Economy Secretary Marcelo Ebrard added that “we’re not in a hurry, but we’re also not interested in having uncertainty.” The shift creates structural uncertainty for investors, especially in sectors reliant on stable export rules, and analysts warn it could dampen medium‑ and long‑term investment in Mexico. General Motors Canada stressed that a renewed USMCA is “very important” for keeping the North‑American auto industry integrated. Both Canada and Mexico are pursuing separate bilateral talks with the United States to address tariff issues while the trilateral review framework is being defined. No further details on how the annual reviews will be conducted have been provided, and the three governments have agreed to continue conversations over the coming weeks.