US denies renewal of USMCA

The White House has chosen not to renew its trilateral trade agreement with Canada and Mexico, also known as USMCA. The Trump administration has opted to conduct annual reviews of the deal after disagreeing with its current form.

In a statement, US Trade Representative Jamieson Greer said that following the most recent joint review, the US would continue to engage with Mexico and Canada to “address the agreement’s shortcomings and our trade deficits with these countries”.

The deal currently remains in force for the next 10 years pending resolution of these issues or until its termination. The US will meet with Mexico the week of July 20 for a third round of negotiations.

President Donald Trump had initially touted the USMCA as the “fairest, most balanced” trade agreement signed into law, yet his sentiments began to wane into his ongoing tenure as relationships between the neighbouring regions soured.

The deal came into question alongside other trade agreements Trump had deemed unfair towards the US. Upon taking up his presidency, Trump sought to establish deals he perceived as more favourable by imposing retaliatory tariffs on regions like the EU and beyond.

In February 2026, however, his plans faced a major setback when the Supreme Court ruled that the use of the International Emergency Powers Act (IEEPA) for broad duties was illegal, and ordered US Customs and Border Protection to process tariff refunds to impacted organisations.

The US then implemented a 10 percent across-the-board temporary import surcharge, set to expire July 24. The administration also expanded investigations targeting specific sectors and introduced a new wave of tariffs over concerns regarding forced labour.