Trump Weighs Withdrawal from US-Mexico-Canada Trade Deal
Anonymous administration sources told the outlet that the president has questioned advisors about abandoning the pact he brokered during his initial White House tenure, though he has not yet indicated a definitive course of action.
A White House spokesperson, when pressed on the deliberations, described Trump as the ultimate decision-maker who continuously pursues superior deals for Americans. The official dismissed speculation about potential moves prior to any presidential announcement as baseless.
An aide in US Trade Representative Jamieson Greer's office indicated the administration intends to preserve Trump's flexibility while negotiating to address identified deficiencies, asserting that maintaining the 2019 agreement terms would harm national interests.
Both officials, speaking anonymously, declined to confirm whether Trump is actively contemplating exiting the trade framework. Greer revealed Tuesday the administration would conduct bilateral talks with Canada and Mexico separately, pointing to heightened friction with Canada. He avoided commenting on whether Trump endorsed extending the pact.
The USMCA supplanted the North American Free Trade Agreement (NAFTA), which regulated cross-border commerce among the three nations from 1994 until Trump condemned it during his first campaign. The president threatened NAFTA termination before embracing the reworked deal, which incorporated a sunset provision mandating summer renegotiation alongside stricter automotive content requirements and elevated US manufacturing standards.
A mandatory review commences July 1 before any extension can proceed. What officials initially expected as procedural formality has escalated into contentious bargaining. Trump has pressured Ottawa and Mexico City on migration enforcement, narcotics interdiction and defense spending—demands extending beyond traditional trade parameters—while seeking additional commercial concessions.
An official noted potential flashpoints include tougher origin requirements for key industrial products, enhanced critical minerals collaboration, labor protections and anti-dumping measures, adding Greer would recommend renewal if negotiators incorporating industry feedback reach consensus.
Agreement renewal would lock in the pact for 16 additional years. Absent consensus, the framework would trigger annual reviews spanning a decade until expiration in 2036. Any signatory could initiate withdrawal by providing six months' advance notice.
Such a departure would upend one of the world's largest economic partnerships, governing nearly $2 trillion in cross-border goods and services trade. Even the possibility of American withdrawal threatens to unsettle investors and global leadership.
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