The United States has announced it will not renew the United States–Mexico–Canada Agreement (USMCA) in its current form. However, negotiations with both Canada and Mexico will continue with the aim of improving the agreement.
Background and Timeline
Originally signed by former President Donald Trump during his first term, USMCA replaced the North American Free Trade Agreement (NAFTA). The pact included a provision allowing the three countries to extend the deal for an additional 16 years—up to July 1—but that option is now off the table.
Following the U.S. decision, the agreement will remain in force on a year-to-year basis unless one of the three nations formally withdraws.
No Consensus Reached in Trilateral Talks
The announcement came after a trilateral virtual meeting among U.S., Canadian, and Mexican officials—which ended without agreement. Jamie Grayer, White House Trade Representative, confirmed: “The United States did not agree to renew the USMCA in its current form. As a result, the agreement is not renewed.”
A senior Trump administration official argued that USMCA failed to sufficiently reduce the U.S. trade deficit with Canada and Mexico. The official emphasized Washington’s intent to conclude revised negotiations “as soon as possible.”
Agreement Remains in Effect—For Now
Grayer clarified that USMCA will continue to apply while issues are resolved—or until its scheduled expiration in approximately 10 years. Trump had signaled earlier this month that he would not support renewal in its present form.
A new round of bilateral talks with Mexico is scheduled for July 20. No date has yet been set for further discussions with Canada.
Canadian Response
Canadian Minister of Export Promotion and International Trade Dominic LeBlanc stated that all three countries agreed to continue negotiations and reaffirmed Ottawa’s strong support for the agreement. Canada and Mexico remain two of the United States’ most important trading partners—though both have also been targeted by new tariffs imposed by the Trump administration following its return to the White House in January 2025.