The United States government announced on Wednesday, July 1, 2026, that it refuses to renew the trilateral trade agreement regulating $1.6 trillion in commerce with Mexico and Canada.
The decision came one day before the scheduled first joint mandatory review of the pact.
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US Trade Representative Ambassador Jamieson Greer stated that the American government will not maintain the United States-Mexico-Canada Agreement (USMCA) without structural revisions.
“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,” Greer said.
The current terms will remain operational while bilateral discussions proceed.
The US scheduled a third round of bilateral negotiations with Mexican officials during the week of July 20 to address issues regarding the joint review.
The refusal follows public criticisms by US President Donald Trump, who repeatedly questioned the necessity of the trilateral economic arrangement.
Trump previously established a sunset clause during his first term, which now triggers a mandatory six-year review period following the non-renewal.
Without an amendment, the agreement will expire on July 1, 2036.
“No real advantage to it; it’s irrelevant,” Trump said.
The administration’s stance reflects ongoing skepticism toward trilateral trade frameworks despite existing import taxes.
A Trump administration official told Reuters that the president remains doubtful about agreements with both neighbors, even after implementing 25 percent tariffs on automotive sectors, 50 percent tariffs on metals, and 10 percent tariffs on lumber.
