The United States will not renew the USMCA trade deal with Canada and Mexico in its present form, US Trade Representative Jamieson Greer announced Wednesday, shifting the pact to a system of annual reviews instead.
What Happens Now
The agreement does not vanish. It stays in force for another decade even without a fresh extension, but it now faces yearly checkups rather than a settled long term horizon. Any of the three countries could still choose to walk away entirely during that stretch. Greer put it bluntly: "The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed." He added that Washington plans to keep pressing Mexico and Canada on what he called shortcomings in the deal and on persistent US trade deficits with both neighbors.
Dairy, Corn and the Deficit Fight
A senior US official briefing reporters said trade imbalances remain the central sticking point, alongside disputes over market access. Dairy and corn came up specifically as friction areas. Mexico's economy secretary, Marcelo Ebrard, acknowledged the standoff but downplayed its severity, saying the remaining gaps between the countries are not impossible to close. He pointed to progress already made: US complaints tied to the agreement have fallen from 54 in 2025 to just 14 now.
Talks Continue Behind Closed Doors
Wednesday's decision followed a virtual session between the USTR, Ebrard and Dominic LeBlanc, Canada's minister overseeing trade with the United States. The outcome was not a surprise. President Trump said back in June he was not interested in renewing the agreement he once signed and championed during his first term, even though Canada and Mexico had each pushed for a 16 year extension. Instead of a fixed renewal, the three nations now face open ended negotiations that could stretch across months or years, touching everything from tariff levels to sector specific trade rules covering industries like autos.
How Fast Will a New Deal Come Together
The senior US official suggested there is no need to run out the ten year clock, saying a resolution should come "quickly, if possible." For now, analysts say the shift will not disrupt daily commerce across the continent. But the uncertainty carries weight beyond the factory floor. Benjamin Shoesmith, a senior economist at KPMG, said the move will likely shake investor confidence, particularly around capital flowing into Mexico, a country that has drawn manufacturers eager to plug into integrated North American supply chains.