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Trump Declares USMCA 'Irrelevant' Ahead of 2026 Review

Automakers warn the pending 2026 review puts integrated North American supply chains at risk.

Overview

  • Touring Ford’s Dearborn plant, President Trump said the pact “expires very shortly,” Americans “don’t need” Canadian products, and he “could have it or not.”
  • The agreement enters its mandatory six-year review this year with options for a 16-year renewal, a U.S. withdrawal, or a non-renewal track with annual reviews.
  • Ford, General Motors, Stellantis, Tesla, and Toyota have urged an extension, and the American Automotive Policy Council says regional integration delivers tens of billions of dollars in annual savings.
  • U.S. Trade Representative Jamieson Greer cited disputes over dairy, softwood lumber, Canada’s streaming and news laws, and provincial alcohol restrictions, and said separate deals with Canada and Mexico are being considered.
  • Canada has begun consultations ahead of formal talks, with minister Dominic LeBlanc set to meet U.S. counterparts, as existing U.S. tariffs include a 35% duty on Canadian imports that exempts CUSMA-compliant goods and sector-specific measures remain in place.