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Trump Floats Letting USMCA Lapse, Triggering Business Push to Extend as USTR Opens Hearings

Any U.S. withdrawal would require formal notice and legal action at home, with the 2026 review serving as the decision point.

Overview

  • President Trump said the pact “expires in about a year” and that he may let it lapse or pursue a new deal with Mexico and Canada, while defending tariffs as driving production back to the U.S.
  • The USTR’s public hearings are underway through Friday with about 1,500 written comments and roughly 150 speakers, including farm groups highlighting the agreement’s importance and raising concerns about tariffs.
  • Business Roundtable, the Business Council of Canada, and Mexico’s Business Council issued a joint call to extend and strengthen the pact and restore tariff‑free treatment for goods that meet its rules.
  • Mexico’s government reports no formal signal of cancellation and says about 90% of domestic submissions favor keeping the agreement, with a consolidated report due to the presidency in January 2026.
  • U.S. trade official Jamieson Greer indicated the administration has weighed replacing the trilateral pact with bilateral deals, though a U.S. exit would take effect six months after notice and likely require congressional action to adjust domestic laws.