USMCA stays in force until 2036, Trump seeks tougher terms

The Trump administration decided not to renew the USMCA in its current form, pressing Canada and Mexico for tougher terms as the pact entered its mandated July review. Article 34.7 required the three governments to decide whether to extend the agreement for another 16 years. If they do not agree, the pact does not end immediately; it stays in place under annual reviews while the clock continues toward a 2036 expiration.

Trilateral trade in 2024 totaled about $1.99 trillion, and USMCA accounts for roughly 30% of global GDP. Automakers, steel and aluminum producers, and supply-chain dependent businesses across North America move parts, inputs and finished goods back and forth across the U.S.-Mexico and U.S.-Canada borders every day.

The Office of the United States Trade Representative opened a public consultation process in September 2025 and held a hearing on December 3-5, 2025, at the U.S. International Trade Commission in Washington, D.C., to prepare for the July 1, 2026 review. Canadian and Mexican officials also spent months gathering public comments and consulting domestic industries. Canadian officials were scheduled to meet U.S. and Mexican counterparts on July 1 for the first trilateral meeting to review the pact.

Trump's main concern is America's trade deficits with Canada and Mexico, and the administration seeks additional concessions rather than simply roll over the existing deal. Canada and Mexico want the agreement to continue.