President Donald Trump announced on July 1, 2026, that he will not renew the trilateral North American trade agreement, known as the United States-Mexico-Canada Agreement (USMCA), which he negotiated during his first term. Trump indicated that he is focusing on separate trade negotiations with Canada and Mexico instead of renewing the agreement.
Despite this decision, senior officials from the Trump administration stated that the USMCA remains in effect and will enter a review period known as a "sunset clause," allowing for potential future discussions on renewal. United States Trade Representative Jamieson Greer emphasized that the U.S. will continue to engage with both countries to address trade deficits and other issues related to the agreement.
Trade talks have been ongoing since Trump reentered office last year, with a senior U.S. official noting that trade deficits were a significant factor in the decision not to renew the agreement. Both Canada and Mexico have expressed concerns regarding Trump's sectoral tariffs on steel, aluminum, and other goods, which they view as obstacles to advancing trade discussions. U.S. officials remain optimistic about resolving these issues, citing some progress on intellectual property matters and the possibility of reaching new protocols with Canada or Mexico during Trump's current term.