Trump Refuses to Renew USMCA Trade Pact He Once Hailed as His Signature Dea

U.S. President Donald Trump has declined to renew the United States-Mexico-Canada Agreement (USMCA), the North American trade pact he once championed as one of his administration's greatest achievements. Instead, his administration has opted to keep the agreement in force under annual reviews rather than extending it for another 16 years.

Wednesday marked the deadline for the three member countries to jointly decide whether to renew the agreement, which is scheduled to expire in 2036.

Following virtual talks among officials from the United States, Canada, and Mexico, the Office of the U.S. Trade Representative (USTR) confirmed that Washington would not renew the agreement under its current terms, citing persistent U.S. trade deficits with its two North American neighbors.

The decision does not terminate the USMCA. The agreement remains in effect while negotiations continue, but it will now be subject to annual reviews instead of the original six-year review cycle.

A senior Trump administration official said the president "chose not to rubber-stamp a USMCA renewal without addressing existing issues."

"In other words, the United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed," the official added.

U.S. Trade Representative Jamieson Greer said Washington would continue discussions with Canada and Mexico to address what it considers shortcomings in the agreement.

Meanwhile, Mexican Economy Minister Marcelo Ebrard said his government is prepared to address U.S. concerns, particularly regarding foreign dependence.

"There is no difference between Mexico, the United States, and Canada that is so significant that we cannot resolve it," Ebrard said.

Trump has increasingly criticized the USMCA in recent months and last month even threatened to abandon the agreement, saying the United States does not need anything from Canada or Mexico while the two countries depend heavily on access to the U.S. market.

The stance contrasts sharply with Trump's position in 2020, when he signed the USMCA as the replacement for the 1992 North American Free Trade Agreement (NAFTA), describing it at the time as "the fairest, most balanced, and beneficial trade agreement we have ever signed into law."

Analysts say shifting the agreement to annual reviews could create uncertainty for businesses that rely on stable North American trade rules and may discourage long-term investment. The USMCA currently governs approximately $2 trillion in annual trade in goods and services among the United States, Canada, and Mexico.