CUSMA not being renewed in its ‘current form,’ U.S. trade rep says

Agreement remains in force for another 10 years, but will be subject to annual reviews

Published Jul 01, 2026  •  2 minute read

The U.S. and Canada flags fly next to the Blue Water Bridge border crossing in Point Edward, Ont., Oct. 24, 2025. Photo by Geoff Robins / AFP / Files /Getty Images

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The United States said Wednesday that it will not renew the free-trade pact with Canada and Mexico in its current form.

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U.S. Trade Representative Jamieson Greer said in a statement that the three countries met virtually to discuss the Canada-United States-Mexico Agreement (CUSMA or USMCA in the U.S.) as required under the trade pact’s joint review.

“The United States did not agree to renew the USMCA in its current form,” Greer said. “As a result, the USMCA is not renewed.”

This does not spell the end of the agreement as it remains in force for another 10 years, but will be subject to annual reviews. However, the deal could end if one country decides to withdraw entirely from the trade pact.

In the event that a deal is reached, the agreement would extend for 16 years.

“The United States will continue to engage with Mexico and Canada to address the agreement’s shortcomings and our trade deficits with these countries,” Greer said. “However, the agreement remains in force pending resolution of these issues or until the agreement’s termination.”

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Canada has ‘unwavering support’ for trade deal

Dominic LeBlanc, the minister responsible for trade relations with the U.S. for Prime Minister Mark Carney’s Liberal government, said in a statement that he reaffirmed Canada’s “unwavering support” for the trade deal.

“The CUSMA supports millions of jobs across North America and ensures Canadian businesses retain secure and predictable access to two of our most important trading partners,” he said.

LeBlanc said he, Greer and Mexico Secretary of Economy Marcelo Ebrard agreed to continue to discuss trade issues that have held up its renewal. He also brought up U.S. tariffs on Canadian steel, aluminum, autos and lumber.

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Major trade irritants for the U.S. include Canada’s supply-managed dairy, poultry and egg sectors, the Buy Canadian policy for major government contracts, provincial measures that keep out American companies bidding on procurement competitions and alcohol import bans in response to U.S. President Donald Trump’s tariffs on Canadian exports not covered by the free-trade deal.

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“Canada approaches these discussions from a position of strength and with the goal of preserving and strengthening one of the most successful trading relationships in the world,” LeBlanc said.

“At a time of global economic uncertainty, Canada is a stable, reliable and trusted partner. We have the energy and natural resources the world needs, a world-class workforce and a predictable business environment attracting the highest investment in decades.”

Trump has long said since being elected a second time that he was not happy with the trade deal signed during his first term on July 1, 2020. The deal involves the trade of nearly $2 trillion in annual goods and services.

“The president has already changed the dynamic between U.S., Canada, and Mexico,” a senior administration official told the Washington Post on the condition of anonymity to brief reporters.

“He’s already, I would say, subsumed USMCA under new trade and tariff policies.”

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