Trump Administration Declines to Renew USMCA in Current Form, Signaling Push for Major Changes

The Trump administration has announced it will not renew the United States-Mexico-Canada Agreement (USMCA) in its current form, signaling a demand for significant revisions. United States Trade Representative Jamieson Greer confirmed the decision, stating the U.S. “did not agree to renew the USMCA in its current form” following a joint virtual review with Canadian and Mexican officials. The agreement, originally spearheaded during Trump’s first term, remains in force but is now set to expire in ten years unless Canada or Mexico withdraws earlier. The move triggers a series of annual reviews that could lead to renegotiation of major parts of the treaty. The primary sticking point appears to be trade deficits, with the U.S. running a $46.4 billion deficit with Canada and a $196.9 billion deficit with Mexico, according to the Office of the United States Trade Representative. Reports suggest the administration seeks to lower these deficits by increasing required North American parts content from 75% to 82%, with at least 50% of that value originating from the U.S. While the agreement remains active for now, the Trump administration has indicated it will continue engaging with Mexico and Canada to address perceived shortcomings. The outcome remains uncertain, especially as Trump’s term ends in early 2029, leaving Canada and Mexico to weigh their options amid potential shifts in U.S. trade policy.