US Trade Representative Jamieson Greer says formal negotiations with Mexico are advancing ahead of a third round of talks, while discussions with Canada have yet to deliver the policy changes sought by the Trump administration.
The US is making progress in negotiations with Mexico to revise the US-Mexico-Canada Agreement (USMCA), while discussions with Canada have yet to produce the concessions sought by the Trump administration, US Trade Representative Jamieson Greer said on Wednesday, 15 July 2026.
Speaking at the Aspen Institute Security Forum in Colorado, Greer said discussions with Mexican officials had been constructive ahead of a third round of formal bilateral USMCA negotiations scheduled for next week in Mexico City.
“So, it’s going well with the Mexicans. They’re quite pragmatic,” Greer said. “But our trade deficit with Mexico really is a challenge. It really is a problem.”
Greer said the administration’s priority is to address the US trade deficit with Mexico while maintaining North American supply chains. He noted that the administration would rather see US companies source goods from Mexico than from China or Southeast Asia, but argued that the existing trade imbalance must be reduced.
“I have a mandate from the president to find a way in whatever deal we make with Mexico to have … tariffs or quotas or whatever it is to try to control that,” Greer said.
“You know, we want to do it in a way that doesn’t disrupt supply chains unnecessarily, but we do want to incentivize supply chains moving” to the US
Earlier, this month, Greer declined to extend the US-Mexico-Canada Agreement on 1 July, citing concerns that included the US trade deficit with Mexico. According to US Census Bureau data, the deficit increased by USD 28 billion, or 17%, to USD 197 billion in 2025. The decision began the process that could lead to the North American trade pact winding down within a decade unless the three countries agree on changes.
The review comes after President Donald Trump questioned the future of the USMCA in June, saying the United States would be better off without the trade pact. Speaking in France on 17 June 2026, Trump said he would “rather not have the agreement,” while adding that he remained willing to sign a renewed deal if negotiations moved forward.
Although Greer did not discuss the administration’s proposal presented during bilateral USMCA talks in May to require that 50% of the value of North American-built vehicles originate in the United States, he said rules of origin for the automotive sector should require a greater share of US and Mexican content and reduce reliance on parts sourced from Asia.
He also said stricter rules of origin should apply to strategic sectors, including industrial goods, electronics and pharmaceuticals, adding that US and Mexican officials are identifying products that could be reshored to North America.
Regarding Canada, Greer said he remains in regular contact with Canadian trade officials but formal negotiations on the future of the trade agreement have not yet begun.
The US trade deficit with Canada, driven largely by US oil imports, declined by USD 12.9 billion, or 21%, to USD 48.3 billion last year.
Greer acknowledged Canada’s decision to withdraw a proposed digital services tax and an online streaming act that would have affected American companies but said he was not prepared to treat those steps as negotiating concessions.
He also declined to predict when an agreement could be reached, saying progress may ultimately depend on direct engagement between President Donald Trump and Canadian Prime Minister Mark Carney.
“I mean, the reality is, if the president and Prime Minister Carney, you know, have an understanding, I’m sure we can put together something that makes sense to get us over the hump.”
