Trump Cools On USMCA Trade Pact

The United States, Mexico and Canada missed a key deadline to renew the USMCA trade pact on schedule, with the Trump administration signaling it wants a reworked deal rather than a straight extension of the agreement for another 16 years.

July 1 Deadline Passes Without a Deal

Representatives from the three countries held virtual talks, and the United States made clear it would not simply sign off on the existing terms. "The United States will continue to engage with Mexico and Canada to address the Agreement's shortcomings and our trade deficits with these countries," US Trade Representative Jamieson Greer said in a statement. "The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed."

A senior administration official told reporters on a call Wednesday that the pact has already lost some of its weight next to other tariff moves Trump has made, saying it has been "subordinated" to those actions. The USMCA currently zeroes out tariffs on millions of goods moving among the three nations, and the missed deadline had been anticipated for days.

Carney's Dry Response and Trump's Cool Stance

Canadian Prime Minister Mark Carney offered a wry preview of the outcome on Tuesday, telling reporters, "I'm not looking for my pen." Mexico had pushed for the agreement to be renewed as is, while the US administration favored continued negotiation instead.

Trump himself has grown openly critical of a deal he signed during his first term. "I'm not a big fan of it," he said last month. "I would rather not have the agreement, but I may sign it. ... We'll see what happens."

According to the senior administration official, Trump's central complaint remains the size of US trade deficits with its neighbors. Talks going forward are expected to reach into industries such as automobiles, where Canada, Mexico and automakers alike are lobbying for reduced duties, as well as aerospace and food products, sectors where the US typically sells more than it buys.

What Comes Next for the Three Countries

Greer has scheduled another round of discussions with Mexican officials this month in Mexico City, following a June 15 to 17 meeting in Washington that produced only a vague joint statement noting the two sides had "advanced discussions." No comparable talks with Canada have been set.

That uncertainty leaves the deal in a kind of holding pattern, one that could persist for months or stretch on for years. The USMCA now moves into a phase of annual reviews and will lapse entirely on July 1, 2036, unless the three governments strike a new arrangement before then.