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WASHINGTON – President Donald Trump is not renewing a trilateral trade pact between the United States, Canada and Mexico that he hailed as a "colossal victory" for American workers when he announced the agreement in 2020 during his first term.Facing a July 1 deadline to declare the administration's intentions, United States Trade Representative Jamieson Greer said he informed leaders of Canada and Mexico the United States will not extend the USMCA for an additional 16-year term.The decision, which was widely anticipated, does not end the pact immediately, but rather kicks off a decade-long annual review process for the three countries to negotiate on the treaty until the USMCA officially expires in 2036.When it was signed by Trump and leaders of Canada and Mexico in 2020, the USMCA effectively created a free trade zone for North America's three largest countries in which certain goods were free from tariffs and other government barriers. The agreement also extended to intellectual property in the countries and digital trade. About 38% of U.S. imports from Canada fall under the USMCA, and about 50% of imports from Mexico.Senior Trump administration officials, who briefed reporters on the move on the condition of anonymity, said many components of the USMCA deal have been "superseded" by tariffs that Trump imposed on goods from Mexico and Canada over the past year in a push to boost U.S. manufacturing.Trump imposed 25% tariffs on imported automobiles from Mexico and Canada, 50% on steel and aluminum imports and 10% on lumber. These tariffs aren't among those blocked by a Supreme Court decision in February that struck down Trump's use of presidential emergency powers to impose reciprocal tariffs on countries.Trump called it "a very momentous, historic, and joyous occasion" when he signed the USMCA in 2020 to replace the North American Free Trade Agreement, which he blamed repeatedly during his first campaign for depleting America's manufacturing sector.At a Rose Garden signing ceremony, Trump said, "The USMCA is the largest, fairest, most balanced, and modern trade agreement ever achieved. There’s never been anything like it."He later called it "the best agreement we’ve ever made."Yet the USMCA did not reduce the U.S. trade deficit ‒ and therefore expand the share of goods the United States is exporting compared to importing ‒ like Trump intended, administration officials said. Instead, the officials credited Trump's steep tariffs on imports for dropping the trade deficit by about 26% in the past year. The agreement also didn't lead to market opportunities for the United States in Canada and Mexico in dairy and other sectors as was expected, officials said.During two rounds of trade USMCA talks with Mexico, the United States has demanded that North American-built vehicles contain 50% U.S. content, a move that would push the regional total to 82%.Greer and other Trump officials are set to hold a third round of USMCA discussions with Mexico on July 20 as part of a joint review between the parties.Mexican President Claudia Sheinbaum has expressed support for extending the USMCA, while Canadian Prime Minister Mark Carney, whose country has faced heightened trade tensions with America, suggested he won't renew an agreement without updates.Contributing: ReutersReach Joey Garrison on X @joeygarrison.
