USMCA Faces Uncertainty as Canada and US Question Mexico's Role in Trade Pact

Concerns over China's influence on Mexico's trade practices fuel tensions ahead of potential 2026 renegotiation.

President-elect Donald Trump and Canadian Prime Minister Justin Trudeau have raised concerns about Chinese goods allegedly entering North America through Mexico to evade tariffs.
Trump has proposed a six-year review of the USMCA in 2026, with the possibility of renegotiating or altering the agreement to better protect U.S. interests.
Canadian leaders, including Ontario Premier Doug Ford, have suggested cutting Mexico out of the trade pact, citing fears of Chinese transshipment and investment in Mexico's auto sector.
Mexican President Claudia Sheinbaum has denied allegations of Chinese goods entering through Mexico and emphasized Mexico's commitment to the trade agreement with the U.S. and Canada.
The future of the USMCA remains uncertain as Canada, Mexico, and the U.S. navigate diverging priorities, with some Canadian officials advocating for a bilateral deal with the U.S.