{"id":16584,"date":"2026-07-02T16:10:38","date_gmt":"2026-07-02T08:10:38","guid":{"rendered":"https:\/\/tingchao.xyz\/?p=16584"},"modified":"2026-07-02T16:10:50","modified_gmt":"2026-07-02T08:10:50","slug":"trump-refuses-to-renew-usmca-trade-pact-toppling-one-of-the-last-pillars-of-stability-in-global-trade","status":"publish","type":"post","link":"https:\/\/tingchao.xyz\/?p=16584","title":{"rendered":"Trump refuses to renew USMCA trade pact, toppling one of the last pillars of stability in global trade"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Six years to the day after the U.S.-Mexico-Canada Agreement on trade took effect, the Trump administration announced Wednesday that it plans to pull the plug on a deal widely viewed as a successful and stabilizing force across North America\u2019s three largest economies.<\/p>\n\n\n\n

Instead of renewing the deal, a senior Trump administration official told reporters, the U.S. will begin of a decade of negotiations on amendments to it.<\/p>\n\n\n\n

One potential outcome of these negotiations is that Washington could reach separate, bilateral trade agreements, one with Mexico and another with Canada.<\/p>\n\n\n\n

The move, which the administration had telegraphed for several months, nonetheless represented a stark reversal for President Donald Trump, who negotiated and signed the USMCA deal in 2018 after he pulled out of the North American Free Trade Agreement.<\/p>\n\n\n\n

A year later, Trump called the USMCA \u201cthe best and most important trade deal ever made by the USA\u201d on social media.<\/p>\n\n\n\n

Fast-forward seven years, and now the administration claims the deal failed to accomplish its goals of modernizing and rebalancing trade among the three countries.<\/p>\n\n\n\n

\u201cThe primary issues that the president\u2019s been focused on with the world, and particularly with Canada, Mexico, is our trade deficit,\u201d a senior Trump administration official said on the media call.<\/p>\n\n\n\n

\u201cWhen USMCA was adopted six years ago by a bipartisan majority and the president\u2019s approval, the idea is that we would modernize the agreement and it would also lead to rebalancing. The agreement did succeed in modernizing the agreement,\u201d the official said. \u201cBut with respect to rebalancing, our trade deficits with both Mexico and Canada shot up during the Biden administration.\u201d<\/p>\n\n\n\n

\u201cWe\u2019ve started to get it under control, but we believe that the USMCA did not operate to control the deficit like the president intended, so that\u2019s really the heart of it,\u201d the official added.<\/p>\n\n\n\n

The collapse of USMCA, widely viewed as one of the few remaining pillars of stability in the Trump-era world of global trade, will amplify economic uncertainty for small and large businesses in all three countries.<\/p>\n\n\n\n

However, the senior Trump administration official stressed that the White House is not interested in dragging out talks for the entirety of the 10 years, saying periodic reviews are a feature of the deal.<\/p>\n\n\n\n

\u201cIt\u2019s called the joint review, and the idea was to make sure that any agreement between Mexico, Canada and the United States always put America first, rather than let a trade deal persist on autopilot over decades,\u201d the official said.<\/p>\n\n\n\n

From the beginning of his second term, Trump has made sweeping global tariffs the centerpiece of his economic policy. Against that backdrop, he and his aides have repeatedly taken issue with the tariff exemptions on USMCA-compliant goods that are at the heart of the deal.<\/p>\n\n\n\n

But there were also hints Wednesday of the more targeted animosity that has been growing between Washington and Ottawa in Trump\u2019s second term.<\/p>\n\n\n\n

Specifically, the senior official took issue with Canada\u2019s decision last year to retaliate against Trump\u2019s tariffs.<\/p>\n\n\n\n

Mexico, which did not impose tariff retaliation measures, is in talks with the White House about the future of the deal, the Trump administration official told reporters.<\/p>\n\n\n\n

Dominic LeBlanc, the Canadian minister responsible for U.S. trade relations, said in a statement Wednesday that he met with U.S. Trade Representative Jamieson Greer earlier in the day and that Canada is \u201cunwavering\u201d in its support for the trade deal.<\/p>\n\n\n\n

\u201cCanada approaches these discussions from a position of strength and with the goal of preserving and strengthening one of the most successful trading relationships in the world,\u201d LeBlanc said.<\/p>\n\n\n\n

He also took a not-so-subtle dig at Washington, saying, \u201cAt a time of global economic uncertainty, Canada is a stable, reliable and trusted partner.\u201d<\/p>\n\n\n\n

LeBlanc noted that the agreement \u201cremains fully in force until 2036 and can be renewed at any time for another 16-year period.\u201d<\/p>\n\n\n\n

Since it was implemented in 2020, the USMCA has indisputably boosted trilateral trade among the three parties.<\/p>\n\n\n\n

\u201cTotal intraregional trade in goods\u201d soared from $1.07 trillion in 2020 to more than $1.63 trillion in 2024, according to research from the Brookings Institution.<\/p>\n\n\n\n

Stateside, businesses and trade groups have expressed mixed feelings about USMCA.<\/p>\n\n\n\n

\u201cNorth American economic integration enables enormous competitive benefits for the region,\u201d the American Automotive Policy Council said in a statement Wednesday.<\/p>\n\n\n\n

But the group also claimed that U.S. automakers \u201cface a disadvantage versus imports from countries whose exports face a flat 15 percent tariff and are not subject to comparable rules of origin. We urge a swift and durable resolution that ensures a level playing field and provides long-term certainty needed for capital-intensive automotive investments.\u201d<\/p>\n\n\n\n

The Business Roundtable, which represents many of the largest American companies, from JPMorgan Chase to Home Depot to Hilton and Pepsico, said the deal has resulted in \u201csignificant economic benefits.\u201d<\/p>\n\n\n\n

\u201cAs the agreement reaches this important milestone, the three governments can better align policies against unfair trading practices, reduce regulatory and economic friction within the region, and ensure North America is better positioned to compete with non-market economies,\u201d the business group said, urging Washington to \u201cstrengthen and extend USMCA.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Six years to the day after the U.S.-Mexico-Canada Agreement on trade took effect, the Trump administration announced Wednesday that it plans to pull the plug on a deal widely viewed as a successful and stabilizing force across North America\u2019s three largest economies. Instead of renewing the deal, a senior Trump administration official told reporters, the […]<\/p>\n","protected":false},"author":8,"featured_media":16585,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[2439,1724,4227],"class_list":["post-16584","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international","tag-trade","tag-trump","tag-usmca"],"yoast_head":"\nTrump refuses to renew USMCA trade pact, toppling one of the last pillars of stability in global trade - LISTEN WORLD<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tingchao.xyz\/?p=16584\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump refuses to renew USMCA trade pact, toppling one of the last pillars of stability in global trade - LISTEN WORLD\" \/>\n<meta property=\"og:description\" content=\"Six years to the day after the U.S.-Mexico-Canada Agreement on trade took effect, the Trump administration announced Wednesday that it plans to pull the plug on a deal widely viewed as a successful and stabilizing force across North America\u2019s three largest economies. 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