U.S. Trade Representative Jamieson Greer has signaled a significant shift in the Trump administration's approach to North American trade policy this week. In comments prepared for a podcast episode, Greer indicated that President Trump could decide to withdraw from the United States-Mexico-Canada Agreement, or USMCA, as early as 2026.
Greer explained that the trade deal includes a built-in review period designed to allow for potential revisions, reviews, or exits. He suggested the administration might pursue separate negotiations with Canada and Mexico rather than maintaining the trilateral agreement. According to Greer, the two countries have distinct labor conditions, manufacturing dynamics, and trade profiles that could warrant individualized trade arrangements.
The trade representative's comments come as the Office of the United States Trade Representative held hearings this week on the future of the USMCA. During these proceedings, U.S. agriculture, business, and policy groups urged the Trump administration to preserve the agreement, emphasizing how the free-trade framework has boosted revenues by ensuring reliable access to Canadian and Mexican markets.
President Trump himself weighed in on the matter when asked about renegotiating the USMCA. Trump stated that the administration would either let the agreement expire or potentially work out separate deals with Mexico and Canada. He characterized both countries as having taken advantage of the United States through the current arrangement.
The USMCA, which Trump signed in 2020 to replace the North American Free Trade Agreement or NAFTA, has been a centerpiece of his first term's trade achievements. However, the agreement now faces considerable uncertainty heading into 2026, when its renewal deadline arrives. Federal law requires the U.S. Trade Representative to submit a formal recommendation to Congress by January 2nd on whether to renew the agreement or pursue alternative courses of action.
This potential upheaval in trade relations comes amid broader tensions between the Trump administration and both Canada and Mexico. Recent months have seen the administration impose tariffs on both nations, with ongoing disputes affecting key industries including automobiles and steel.
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