US Won’t Auto-Renew USMCA Trade Deal

The US has decided not to automatically extend its trade agreement with Mexico and Canada (USMCA) for another 16 years. A US official said the deal wouldn’t be renewed as-is until outstanding problems are fixed.

Without a full renewal, the deal now faces a 10-year countdown toward possibly ending by 2036, instead of staying in place until 2042.

The US wants changes on car manufacturing rules, dairy trade access, and blocking countries like China from using the deal to bypass tariffs.

This means the three countries will now need to meet yearly to negotiate. Business groups wanted a full extension for stability, but some US steel industry groups support the yearly reviews, saying it gives American negotiators more leverage.

The USMCA, worth about $2 trillion in yearly trade, replaced NAFTA six years ago.