President Donald Trump says the US would be better off without the USMCA, yet remains open to renewing the agreement ahead of a 1 July deadline, as Mexico and Canada push for terms favouring agriculture and automotive competitiveness amid nearly USD 1.6 trillion in annual trilateral trade.
President Donald Trump has cast doubt on the value of the US-Mexico-Canada Agreement (USMCA), suggesting the country would perform better without it. Speaking in France on Wednesday, 17 June 2026, Trump indicated he would “rather not have the agreement,” though he remains willing to sign a renewal if negotiations proceed.
The trio of nations faces a critical deadline of 1 July to approve renewal terms or formally signal their intention to exit—a 10-year withdrawal process that would provide additional time for renegotiation.
Talks underway on agricultural and competitive terms
The US Trade Representative’s Office is conducting negotiations with Mexico this week in Washington, with discussions centred on agriculture and ensuring a level playing field. A subsequent round of talks is scheduled for the week of 20 July in Mexico City. Agricultural stakeholders are pushing for a 16-year extension featuring duty-free access to farm products, enhanced provisions for genetically modified corn and ethanol, and stronger access to Canada’s heavily protected dairy sector.
Auto sector seeks competitive advantage through agreement
The automotive industry is equally vocal about renewal. Industry representatives contend that North American automakers currently operate at a disadvantage compared to competitors in countries with established reciprocal trade agreements.
The six-year-old pact underpins nearly USD 1.6 trillion in annual trilateral trade, though the United States registered significant deficits: USD 46 billion with Canada and USD 197 billion with Mexico during 2025.
