The U.S. is getting ready to start a renegotiation of its largest free trade deal: the US-Mexico-Canada Agreement
The United States is preparing to begin the process of renegotiating the United States-Mexico-Canada Agreement (USMCA), one of its largest free trade pacts, according to the Wall Street Journal. The first step is expected to be a request from the U.S. Trade Representative (USTR) for public consultations, which under the 2020 implementation law must conclude by October 4. Input will be sought from both businesses and labor unions, and the move has already set off intense debate about the direction of North American trade policy.
After the consultation period, the government is expected to hold at least one public hearing. By January 2026, the administration must deliver a report to Congress, with the first trilateral meeting between the U.S., Mexico, and Canada anticipated by July 1, 2026.
The USMCA, signed during President Trump’s first term, replaced the 1992 NAFTA deal, which Trump had sharply criticized for driving factories and jobs to Mexico. But during his second term, Trump’s decision to impose tariffs on both Canada and Mexico—citing drug trafficking concerns—has added tension. In January, the administration levied tariffs of 25% on the two countries, though exemptions applied for goods meeting USMCA rules of origin. While this strategy aims to strengthen U.S. leverage in talks, it has also unsettled supply chains, particularly in the auto sector, where significant trade still remains vulnerable to tariffs.
Security concerns have been linked to trade negotiations as well. Trump threatened punitive tariffs on Mexican goods unless Mexico ramped up efforts to combat drug smuggling, making cross-border security a parallel issue. Mexico, for its part, remains highly dependent on the U.S. market, with about 80% of its exports heading north, and is expected to push hard to preserve that access. At the same time, Washington is pressing Mexico on policies in areas such as energy, agriculture, and intellectual property protection.