President Trump has signalled the U.S. may not renew the United States–Mexico–Canada Agreement (USMCA) citing persistent trade deficits with both nations, though negotiations with Canadian and Mexican leaders are continuing ahead of a 1 July renewal deadline.
President Donald Trump has indicated the US may not renew the United States–Mexico–Canada (USMCA) Agreement, citing trade imbalances and stating that neither Canada nor Mexico offers goods America cannot obtain elsewhere. Despite these comments, he confirmed ongoing discussions with both nations’ leaders about the pact’s future.
The three countries face a critical deadline of 1 July to either renew their existing deal or formally signal intent to exit—a process that would unfold over a decade, allowing time for renegotiations. The agreement, now six years old, supports nearly USD 1.6 trillion in annual trilateral commerce and has deeply woven together North American supply chains.
Trade imbalance driving negotiations
The U.S. recorded a USD 46 billion goods deficit with Canada and a USD 197 billion deficit with Mexico in 2025. Mexico has ranked as America’s largest trading partner since 2023, with roughly 80% of its exports flowing to the US, while approximately 70% of Canadian exports head southward. Conversely, Mexico and Canada together account for nearly one-third of total US exports.
Formal talks scheduled
The US Trade Representative’s Office has scheduled a second round of negotiations with Mexico for 16–17 June in Washington, followed by a third round in Mexico City during the week of 20 July, with discussions centred on agriculture and trade fairness. Canada has reported a positive recent meeting with the US but has not yet set formal negotiation dates.
Earlier, the US and Mexico began formal bilateral talks to revise the six-year-old US-Mexico-Canada Agreement (USMCA), with the United States advocating stricter regional content requirements, including a proposed minimum US-content threshold for automotive parts manufactured in Mexico. The first round concluded on 28 May 2025, with subsequent talks scheduled for 16-17 June in Washington and the week of 20 July in Mexico City.
