The Trump administration said Wednesday it will not renew the United States-Mexico-Canada Agreement (USMCA) in its current form. The decision comes as the agreement reached its first mandatory six-year review, a milestone that could have extended the pact for another 16 years. The existing agreement will remain active for its remaining 10-year lifespan through July 1, 2036, during which Washington plans to pursue significant modifications to resolve trade imbalances and domestic manufacturing concerns. The three countries now enter a period of annual reviews unless they agree to revise and renew the deal before its scheduled 2036 expiration.

Although the announcement does not terminate the agreement, economists and business groups warned that prolonged uncertainty could weigh on investment decisions across North America. The USMCA, which replaced the North American Free Trade Agreement in 2020 after being negotiated during President Trump’s first term, governs nearly $2 trillion in annual trade among the three countries. Analysts said the prospect of yearly reviews could complicate long-term planning for industries including automotive manufacturing, steel, aluminum and digital commerce.

U.S. Trade Representative Jamieson Greer said the administration believes the agreement has fallen short of addressing U.S. trade deficits and other longstanding concerns with Canada and Mexico. In a statement, Greer said, “The United States did not agree to renew the USMCA in its current form,” adding that Washington will continue negotiations with both countries to address what it considers weaknesses in the pact. U.S. officials have indicated they want stronger North American manufacturing requirements, tighter automotive rules of origin, greater limits on Chinese content entering regional supply chains and expanded market access for American industries, including agriculture.

Canadian and Mexican officials reiterated their support for maintaining the regional trade framework while expressing a willingness to negotiate changes. Mexican President Claudia Sheinbaum said the agreement can still be extended during the coming decade, while Canadian officials have emphasized resolving broader trade disputes alongside USMCA discussions. The United States is expected to continue bilateral negotiations with Mexico later this month, while talks with Canada are anticipated to follow as the administration seeks revisions before deciding the pact’s long-term future.

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