The United States–Mexico–Canada Agreement, or USMCA, the trade treaty between the nations named, has been in place since 2020, having replaced the North American Free Trade Agreement (NAFTA). Now, its fate is uncertain; the Trump administration has reportedly decided not to renew the deal, which will force new negotiations between America, Canada, and Mexico.
The Trump administration has decided not to renew its trilateral trade pact with Canada and Mexico, instead opting to conduct annual reviews of the treaty that President Donald Trump once called “the best agreement we’ve ever made.”
The widely anticipated decision on the United States-Mexico-Canada Agreement, known as USMCA, was revealed Wednesday, the deadline for the three North American trade partners to determine whether they would renew their agreement for another 16-year term.
The decision means the USMCA will stay in effect for another decade, provided no member tries to withdraw from it. But it also triggers yearly reviews that could result in the renegotiation of major parts of the treaty.
That's not the worst idea in the world. Markets are anything but stable at the best of times, and a periodic review of the trade agreements may be profitable for all parties. And, it seems, President Trump is less than happy with some of the trade deals as they stand:
Trump “chose not to rubber stamp a USMCA renewal without addressing existing issues,” a senior administration official told reporters in a call announcing the move.
“In other words, the United States did not agree to renew the USMCA in its current form,” the official said. “So, as a result, the USMCA is not renewed.”
Trump’s “primary” concern with USMCA centers on the U.S.′ trade deficits with the two trading partners, according to the official.
That's always been one of the president's trade hot-buttons; again, no real surprises here.
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This decision may cause some pearls to be clutched in some quarters, to which the proper reply is, "Yes, so?"
President Trump has hinted before now that the USMCA may have to be re-examined.
Trump says he "doesn't know" if he will renew the USMCA because "we don't need anything that they have" in Mexico or Canada pic.twitter.com/iyOD9979Y2
— Headquarters (@HQNewsNow) June 10, 2026
That's as may be, but the president is correct; we have things Canada and Mexico need, not the least of which is currency.
These two nations are the United States' largest trade partners, even more than China. Mexico is the largest, with total trade nearing a trillion dollars a year. Canada is a close second, coming in at $760-877 billion. China is a not-that-close third, at $580-$660 billion a year. The European Union comes in at $1.5 trillion combined, but they only beat out Canada and Mexico if you lump them all together.
Even the best of trade partners, though, should sit down around the table and hash things out now and then. That would appear to be what's happening here. What's more, the best deals are always the ones in which both sides gain something, and, of all things, President Trump knows about making deals.
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