President Donald Trump has announced he will not reauthorize the United States-Mexico-Canada Agreement in its current form, throwing the cornerstone of North American trade into serious jeopardy just weeks before the agreement’s first mandated review.
The USMCA, which replaced NAFTA and took effect on July 1, 2020, governs approximately $1.8 trillion in annual trilateral trade between the three countries. Instead of supporting a straightforward 16-year extension, the Trump administration is pushing for separate bilateral negotiations with each partner.
What’s actually happening with the USMCA
The USMCA carries a 16-year term but includes a mandated six-year joint review, the first of which is scheduled for July 2026.
On June 1, 2026, Canada formally requested the full 16-year renewal, viewing the extension as critical protection against broader US tariffs.
