The Trump administration announced Wednesday that it will not automatically renew the United States-Mexico-Canada Agreement (USMCA) for its full 16-year term, opting instead to conduct annual reviews of the trade pact.
A senior administration official said the United States “did not agree to renew the USMCA in its current form,” adding, “As a result, the USMCA is not renewed.”
The administration said the decision is intended to address shortcomings in the agreement and ensure U.S. trade interests are better protected. President Trump has recently criticized the trade deal, arguing that persistent trade deficits with Canada and Mexico indicate the agreement disproportionately benefits America’s northern and southern neighbors.
The USMCA took effect in 2020, replacing the North American Free Trade Agreement (NAFTA), which Trump had long argued was unfair to American workers and businesses. While the USMCA was promoted during Trump’s first term as a more balanced trade agreement, the administration now says additional changes are needed.
