Trump says he may not renew USMCA trade deal, setting up months of talks
President Trump on Wednesday threw the USMCA trade deal into doubt, saying the United States has no need for its two top trading partners.
Trump's statement
President Donald Trump told reporters in the Oval Office that he was unsure about renewing the United States–Mexico–Canada Agreement (USMCA), the 2020 trade pact he once called the fairest and most balanced deal ever signed. "I don't know that I'm going to renew it," Trump said on 10 June, repeating claims that the US gains nothing from the relationship.
We don't need anything that Canada has, we don't need anything that Mexico has, but they need everything that we have.
He added that the US does not need Canadian or Mexican cars, lumber, or energy. The comments came hours before the two sides were set to continue formal negotiations.
Reaction and confusion
The remarks disrupted nascent trade talks that had already begun between US Trade Representative Jamieson Greer and Mexican officials. Canada, meanwhile, saw its trade minister visit Washington earlier this month to meet Greer and signal that technical talks were about to start. The sharp change in tone from a president who in January 2020 had celebrated USMCA as "the best agreement we've ever made" left allies scrambling.
It's the fairest, most balanced, and beneficial trade agreement we have ever signed into law.
The earlier statement came at the signing ceremony during Trump's first term. This week's reversal jeopardizes the automatic 16-year extension clause.
Negotiation timeline
Mexico and the US have already held a first round of talks. A second round is scheduled for June 16–17 in Washington, and a third round will take place in Mexico City the week of July 20. The timeline below highlights key dates.
- Trump says he may not renew the trade pact, shocking allies.
- Second round of US-Mexico trade talks opens in Washington.
- Deadline for automatic 16-year extension; if missed, annual reviews begin.
- Third round of negotiations scheduled in Mexico City (week of July 20).
The USMCA faces a 1 July milestone: if no extension is agreed, the pact enters annual review cycles but can remain in force for up to a decade unless a party withdraws.
Economic stakes
The deal replaced the North American Free Trade Agreement (NAFTA), which Trump repeatedly called the "worst trade deal ever." USMCA eliminated tariffs on many goods, especially in the auto sector. Trump asserted that without a deal the US would fare better, arguing that the trading relationship benefits Canada and Mexico far more. The countries together account for the largest share of US trade, and prolonged uncertainty could affect supply chains and investment across the continent.
