Trump Rejects Renewing USMCA in its Current Form, Opening a Period of Trade Uncertainty

  

US President Donald Trump decided not to support the renewal of the United States-Mexico-Canada Agreement (USMCA) during the first mandatory review of the agreement, a decision that opens a new chapter of negotiations and generates uncertainty about the future of North America's main trade pact.

The decision does not imply the immediate cancellation of the treaty. According to the USMCA's own rules, the agreement remains in effect, but without a joint renewal to extend its validity for another 16 years, it will enter a period of annual reviews while the three countries seek to reach a consensus on modifications. If a new agreement is not reached, the treaty would expire in 2036.

The US administration justified its position by stating that the agreement, in its current format, has not corrected the trade imbalances that Washington maintains with Mexico and Canada. Furthermore, he maintained that it is necessary to renegotiate various aspects to strengthen U.S. manufacturing, tighten rules of origin, and review other trade commitments considered unfavorable to U.S. interests.

The decision marks a significant shift, as it was Trump himself who spearheaded the negotiation and signing of the USMCA in 2020 as a replacement for the North American Free Trade Agreement (NAFTA). However, in recent months, the president had repeatedly expressed his dissatisfaction with the agreement's operation and had indicated that he was unwilling to extend it without fundamental changes.

In response, the Mexican government reiterated its willingness to continue negotiations and seek a modernization of the treaty that preserves the region's economic integration. Officials from the three countries have scheduled new rounds of talks in the coming weeks to discuss possible adjustments to the agreement. Washington's stance has generated concern among business leaders, investors, and industry representatives, who warn that prolonged uncertainty could affect supply chains, investment, and regional trade, especially in strategic sectors such as automotive, manufacturing, and agribusiness. Despite this, the USMCA remains fully in effect, and trade between Mexico, the United States, and Canada will continue to be governed by its provisions while the review process continues.