President Donald Trump has decided not to extend the U.S.-Mexico-Canada Agreement (USMCA) and will instead pursue independent trade deals with Canada and Mexico, FOX Business has learned.
Wednesday marked the deadline for the six-year review.
A Trump administration official told FOX Business that the president opted against extending the agreement.
The official indicated that Trump will instead pursue separate deals with Canada and Mexico that last for up to 10 years.
TRUMP ‘ABSOLUTELY’ GOING TO RENEGOTIATE USMCA, LUTNICK SAYS
The USMCA, which replaced NAFTA, was negotiated during Trump’s first term, signed in December 2019 and took effect on July 1, 2020.
The agreement is slated to remain in effect until 2036.
U.S.
Trade Representative Jamieson Greer confirmed Wednesday that the three countries met virtually for the required joint review and that the U.S. declined to renew the agreement in its current form.
"In accordance with the agreement, the United States, Mexico, and Canada met virtually today to discuss the operation of the USMCA," Greer said in a statement.
"The United States did not agree to renew the USMCA in its current form.
As a result, the USMCA is not renewed."
GORDON CHANG WARNS CHINESE EVS ENTERING US VIA CANADA COULD BECOME ‘ROLLING SPY MACHINES’
Greer said the U.S. will continue to "engage with Mexico and Canada" to address what the administration views as "shortcomings" in the agreement, as well as U.S. trade deficits with both countries.
"However, the agreement remains in force pending resolution of these issues or until the agreement’s termination," Greer noted.
The U.S. is scheduled to meet with Mexico during the week of July 20 for a third round of bilateral negotiations tied to the USMCA joint review, according to Greer.
Canada and Mexico remain among America’s largest trading partners.
KEVIN O'LEARY WARNS CANADA OVER CHINA TIES AS TRUMP THREATENS 100% TARIFF ON NORTHERN NEIGHBOR
Data from the U.S.
International Trade Commission (ITC) showed that in 2024, Canada and Mexico were the two largest export markets for U.S.-made goods, while Mexico was the largest source of U.S. imports and Canada ranked third in that category.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The president has sought to renegotiate the terms of the USMCA since his return to the White House, and imposed 25% tariffs on Canada and Mexico last year.
That spurred negotiations over the tariffs and underlying issues Trump had with trade terms between the three countries, raising uncertainty over the agreement's future.