The US administration on Wednesday said it will not renew the expired trilateral trade pact with Canada and Mexico known as USMCA, reiterating its commitment to continue negotiations with its partners to reach a better deal.
The agreement, signed during President Donald Trump’s first term, should be renewed not later than July 1 for another 16-year period.
Although it wasn't extended by the Wednesday deadline, the deal remains in force for another 10 years and will instead be subject to annual reviews, unless a country decides to withdraw entirely, according to AFP.
Canada and Mexico had both called for a 16-year renewal of the USMCA.
Washington’s announcement came on Wednesday after a virtual meeting between representatives of the three concerned parties failed to reach its goals.
“The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed,” US Trade Representative Jamieson Greer said in a statement.
He said the White House “will continue to engage with Mexico and Canada to address the agreement's shortcomings and our trade deficits with these countries.”
However, Greer added, “the agreement remains in force pending resolution of these issues or until the agreement's termination.”
Trump said in June that he was not “looking to renew” the agreement in its current form while the US held a series of bilateral trade negotiations with Mexico and Ottawa to get a better deal.
US officials are scheduled to meet with Mexico representatives the week of July 20 for another round of bilateral negotiations.
Greer did not unveil a schedule for formal talks with Canada.
Mexico and Canada are the United States' top two global trading partner. But the two countries were among the first to be hit by Trump’s tariffs imposed after the US President returned to the White House in January 2025.
Trump accused Mexico and Ottawa of not doing enough to contain the flow of the illegal drug fentanyl and immigrants into the United States.
In return, both nations confirm that over 80% of exports from Mexico and Canada enter the United States under the USMCA provisions, shielding them from universal tariffs.
