The Trump administration formally chose not to renew the U.S.-Mexico-Canada Agreement (USMCA) in its current form during the mandatory six-year joint review. U.S. Trade Representative Jamieson Greer confirmed the decision following a virtual meeting with Canadian and Mexican counterparts, stating, “The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed.”
This decision does not mean the trade pact is canceled or ending immediately. Under the agreement’s terms, the refusal to automatically extend the deal for another 16 years simply triggers a rolling annual review process. The USMCA remains fully in force, and all current preferential tariffs, rules of origin, and trade flows will continue unchanged until at least July 2036.
The administration opted against the long-term renewal to maintain leverage as it seeks to address growing trade deficits, protect domestic manufacturing, and close loopholes regarding the transshipment of Chinese goods through Mexico. The three nations will now enter a multiyear negotiation process to address these shortcomings, with the next formal round of bilateral talks scheduled between the U.S. and Mexico. The trade pact can still be renewed and extended for a longer term at any point during these annual reviews if all three countries eventually reach an agreement on modifications
Ambassador Greer issued the following Statement: “The Agreement between the United States of America, the United Mexican States, and Canada (USMCA or “Agreement”) requires the USMCA Free Trade Commission, composed of government representatives of each Party, to conduct a joint review of the Agreement on July 1, 2026. In accordance with the Agreement, the United States, Mexico, and Canada met virtually today to discuss the operation of the USMCA. The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed. The United States will continue to engage with Mexico and Canada to address the Agreement’s shortcomings and our trade deficits with these countries. However, the Agreement remains in force pending resolution of these issues or until the Agreement’s termination. As previously announced, the United States will meet with Mexico the week of July 20 for a third round of bilateral negotiations related to the USMCA joint review.”
