Summary
President Donald Trump might consider leaving the U.S.-Mexico-Canada Agreement (USMCA) next year. The agreement was created to replace the previous trade deal and includes plans for periodic reviews. Trade and tariffs are a key part of President Trump's plans, impacting how the U.S. interacts economically with Mexico and Canada.
Key Facts
- President Trump is considering withdrawing the U.S. from the USMCA, the trade deal with Mexico and Canada.
- USMCA replaced the old North American Free Trade Agreement with a plan that lasts 16 years unless extended.
- The agreement has a review process starting in 2026 to decide if it should be extended beyond 2036.
- USMCA covers about $2 trillion in trade each year among the three countries.
- Article 34.6 of USMCA allows a country to leave if it gives six months' notice to the others.
- Article 34.7 requires a joint review every six years to possibly extend the agreement.
- U.S. Trade Representative Jamieson Greer emphasized differences between Canada's and Mexico's economies in relation to the U.S.
- A joint statement from business groups in all three countries supports extending the USMCA for continued economic benefits.
