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The USMCA renewal deadline passed this week without a deal, as the Trump administration declined to extend the trade pact with Canada and Mexico in its current form, opting instead to push for further negotiations over what officials call persistent trade deficits and structural shortcomings in the agreement.
At a Glance
- The USMCA renewal deadline fell this week, and the pact was not renewed as written.
- US Trade Representative Jamieson Greer said the agreement's shortcomings and trade deficits remain unresolved.
- Canadian Prime Minister Mark Carney signaled Tuesday he had no plans to sign anything soon.
- Talks with Mexico resume this month in Mexico City; no new Canada talks are scheduled.
- Without a fresh agreement, the pact faces annual reviews and full expiration on July 1, 2036.
Why the Deal Stalled
Representatives from the United States, Mexico and Canada held virtual talks on Wednesday, but the US side made clear it would not simply extend the agreement Trump himself negotiated during his first term. Greer put it plainly in a statement: "The United States will continue to engage with Mexico and Canada to address the Agreement's shortcomings and our trade deficits with these countries. The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed."
A senior administration official, speaking to reporters on a call Wednesday, went further, suggesting the pact has already lost some of its weight given the president's other tariff moves. The official said the USMCA has been "subordinated" to those separate actions to some degree, a comment that raises questions about how central the agreement remains to Trump's broader trade strategy.
Trump's Own Mixed Signals
The president has been openly lukewarm about the deal bearing his own political fingerprints. "I'm not a big fan of it," Trump said last month. "I would rather not have the agreement, but I may sign it. … We'll see what happens." According to the senior administration official, Trump's main preoccupation is the trade deficits the US runs with its neighbors, though the talks are expected to range well beyond that single issue.
What's Actually on the Table
The USMCA currently zeroes out tariffs on millions of goods moving between the three countries, covering everything from cars to crops. Autos are shaping up as one of the thornier subjects, with both Canada and Mexico, along with automakers themselves, pressing for lower duties. Aerospace and food products are also in play, sectors where the United States typically exports more than it imports.
Greer has scheduled another round of talks with Mexican officials this month in Mexico City, building on a June 15 to 17 meeting in Washington that produced only a vague joint statement noting the two sides had
