USMCA Trade Deal: US Refuses to Renew Pact With Mexico, Canada

The United States will not renew the USMCA trade agreement with Mexico and Canada in its current form, a decision that reopens questions about tariff exposure and supply chain costs for companies whose stocks trade across all three markets. US trade representative Jamieson Greer said on July 1 that Washington remains committed to fixing what he called the deal's shortcomings and the trade deficits it has not solved.

Greer's statement did not kill the agreement outright. The USMCA, which replaced NAFTA in 2020 and underpins close to 1.6 trillion dollars in annual trade among the three countries, stays in force while negotiations continue. Canada's Minister of Internal Trade Dominic LeBlanc noted the pact can still be renewed at any point during a 16 year window, and that it remains active for another decade regardless of the current impasse.

Third Round of Talks Set for July 20

The US and Mexico are scheduled to hold a third round of bilateral discussions on July 20, according to the USTR statement. Those talks follow President Trump's comments in June at the White House, where he flagged the possibility of walking away from renewal altogether and pointed to persistent trade imbalances with both neighbors as the core grievance.

LeBlanc framed Canada's priority differently, focusing on sectoral tariffs rather than the broader renewal timeline. He said discussions with Washington now center on steel, aluminum, autos and lumber, sectors where Canadian exporters have faced duties that predate this latest review. His comment that both sides