Canada and Mexico have begun parallel discussions to renew the USMCA, with Canada’s trade minister in Washington signaling that technical talks are underway to start.

Both Canada and Mexico are pressing for a longer-term extension, with a proposed 16-year extension supported by Canada’s Dominic LeBlanc and Mexico’s Marcelo Ebrard.

U.S. Trade Representative Jamieson Greer said formal negotiations with Mexico are continuing, focusing on enforcing or potentially changing the rules of origin to prevent using Mexico as a third-country hub, with Canada expected to join.

Trump did not announce a formal withdrawal, but his remarks could create uncertainty for manufacturers, exporters, and investors with cross-border supply chains.

Trump described CUSMA as a great deal because it can be terminated, but he said he views it as irrelevant amid ongoing tariff tensions on steel, aluminum, and autos.

The remarks came at the White House after Trump signed the Secure America Act, underscoring the broader possibility of renegotiation or termination in the future.

USMCA went into force in 2020 and continues to affect consumers by exempting many products from tariffs imposed in 2025.

If renegotiations proceed, expect changes to industrial provisions and tariff policies that could impact prices and supply chains across the three economies.

Unilateral termination under article 32.6 is possible with six months’ notice, though its legality is unsettled and could trigger a Supreme Court dispute.

USMCA underpins roughly $1.6 trillion in annual trilateral trade, highlighting the high stakes of any renewal or exit decision.

Trump stated he is not seeking renewal and suggested Canada and Mexico do not need the U.S., while insisting they must treat the U.S. better; renewal deadline and exit signaling remain pivotal.

The treaty replaced NAFTA and is central to modern trade rules on goods, services, digital commerce, labor standards, and IP, with formal renewal expected in coming months.