USTR opens USMCA review amid questions over tariff costs

The Office of the U.S. Trade Representative (USTR) has opened a public comment period regarding the future of the United States-Mexico-Canada Agreement (USMCA). The review process focuses on five areas: the operation of the agreement, compliance by Canada and Mexico, potential U.S. actions, the investment climate, and economic security.

Critics note that the USTR's request for comment does not ask for data regarding the specific costs that tariffs on Canadian and Mexican goods have imposed on American importers or consumers. According to Tax Foundation estimates, the average U.S. household will face approximately $820 in tariff costs this year, with roughly $130 of that amount attributed to goods from Canada and Mexico.

The Congressional Budget Office (CBO) previously estimated that U.S. consumers bear the vast majority of tariff costs through higher prices. While the CBO suggested the share absorbed by foreign exporters might rise to between 10% and 15% by the end of 2025, the federal government has not provided a specific dollar figure for the cost to individual households.