President Donald Trump announced Wednesday that he does not plan to reauthorize the United States-Mexico-Canada Agreement (USMCA) in its current form. The decision shifts the landmark trade deal into a phase of rolling annual reviews and injects fresh uncertainty into North American markets.
The decision comes just ahead of a crucial July 1 milestone, which was originally established to extend the current pact for another 16 years. Instead of a seamless extension, the three nations are now staring down months or potentially years of renegotiations over critical industrial provisions.
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Trump signaled his stance by emphasizing that the current trade dynamics heavily favor America’s neighboring trading partners. "I’m not looking to renew it," Trump told reporters, arguing that Canada and Mexico rely far more on American goods than the U.S. does on theirs.
The escalating trade tensions directly threaten a massive economic pipeline that handles nearly $2 trillion in annual trilateral trade. Up until now, goods compliant with the USMCA have enjoyed sweeping tariff exemptions, keeping consumer prices stable across the continent.
While Trump stopped short of threatening a full withdrawal from the pact, any participating nation can legally exit the deal with just six months’ notice.
The next round of formal negotiations between the U.S. and Mexico is scheduled to take place later this month. Meanwhile, the U.S. and Canada have yet to launch formal talks.
source https://www.investing.com/news/economy-news/trump-says-he-will-not-renew-usmca-trade-pact-with-mexico-and-canada-4735872
