US President Donald Trump has indicated he will not seek to extend the US-Mexico-Canada Agreement (USMCA), triggering the start of annual reviews of the trilateral trade pact.
Speaking to reporters at the White House, Trump, as reported by Bloomberg, said he was not looking to extend the agreement for a further 16-year term ahead of a 1 July review milestone.
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Under the pact’s terms, the USMCA remains in force for up to a decade without an extension, subject to annual reviews, unless a member country formally withdraws.
Trump said: “I am not looking to renew it. Because to be honest with you, the US does much better. We do not need anything that Canada has, we do not need anything that Mexico has, but they need everything that we have, and they have to treat us better.”
The President stopped short of signalling an intention to withdraw from the agreement, which permits any signatory to exit with six months’ notice.
Negotiated during Trump’s first term, the USMCA underpins trade flows between the three economies, which together account for nearly $2tn in annual trade.
Goods meeting the agreement’s rules of origin have largely been shielded from the broader tariff measures introduced under Trump’s second term, helping to contain cost pressures for American consumers.
Trade talks between the US and Mexico City are scheduled to continue this month, with a further round set for July, while formal negotiations between the US and Canada have yet to get under way.
The administration’s priorities include reshoring key industries, with automotive manufacturing prominent among them, though the precise scope of any proposed changes has not been disclosed.
Discussions have centred on potential bilateral arrangements under which Canada and Mexico could offer concessions in return for relief from tariffs, including Section 232 duties applied to automobiles and steel.
Section 232 refers to a provision of the US Trade Expansion Act of 1962 that authorises the President to impose tariffs or other trade restrictions on imports if the Commerce Department determines they threaten national security.
Mexico has contended that the existing tariff structure puts its automotive industry at a competitive disadvantage relative to countries such as Japan and South Korea, both of which have struck trade deals with the US that brought auto tariffs down to 15%.
Canadian and Mexican vehicle exports to the US currently face a 25% tariff on their non-US content, while auto parts have so far been exempt — though the US has indicated a comparable levy could be extended to parts in due course.
Most USMCA-compliant goods continue to be excluded from the broad US tariff regime, even as sector-specific duties on industries such as automotive manufacturing remain in place.
