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Trump Puts USMCA’s Future in Doubt, Floats Letting Pact Lapse or Starting New Deals

A senior U.S. trade aide signaled bilateral options during USTR hearings, where industry voices pressed for an extension.

Overview

  • President Donald Trump said the agreement could be allowed to expire during the 2026 review or be replaced with a new deal with Mexico and Canada, while defending tariffs as boosting U.S. revenue and reshoring production.
  • Jamieson Greer indicated the administration has discussed abandoning the trilateral pact or splitting it into separate agreements with Mexico and Canada.
  • Business groups from the three countries urged Washington, Ottawa, and Mexico City to extend and strengthen the accord to safeguard integrated supply chains.
  • Mexican President Claudia Sheinbaum said the pact continues through the review process and plans to raise tariffs and treaty issues with Trump during a brief meeting in Washington.
  • No formal U.S. withdrawal has been initiated, and any exit would require written notice, a six‑month wait, and domestic legal changes likely involving Congress as USTR collects stakeholder testimony.