President Donald Trump has cast a fresh doubt on the future of the United States-Mexico-Canada Agreement (USMCA), saying he is not certain he will renew the North American trade pact when it comes up for review during his current term.
Speaking at the White House after signing the Secure America Act on Wednesday (local time), Trump said the agreement's most important feature was not the trade provisions themselves but the fact that it allows the United States to revisit and potentially terminate the arrangement.
"I don't know that I'm going to renew it," Trump said when asked about the future of the agreement. Trump, who negotiated the USMCA during his first term to replace the North American Free Trade Agreement (NAFTA), reiterated his long-standing criticism of the earlier pact.
"NAFTA was a disaster for our country, the worst trade deal ever made, by far," he said. The President argued that USMCA corrected many of the shortcomings of NAFTA but said its built-in review mechanism remains its most valuable feature.
"USMCA did one thing that I loved," Trump said. "After six years, it comes up for renewal." Trump suggested that the United States has greater economic leverage than its two North American trading partners and should use that position in any future negotiations.
"We don't need anything that Canada has. We don't need anything that Mexico has, but they need everything that we have," he said. "And they have to treat us better." The President also pointed to persistent trade deficits with both countries as a source of concern.
"With Mexico and Canada, we have trade deficits," Trump said. "We should have surpluses with them." While he stopped short of announcing a formal review or withdrawal process, Trump's remarks are likely to raise uncertainty among manufacturers, exporters and investors who rely on integrated supply chains spanning the United States, Canada and Mexico.
The USMCA entered into force in 2020 after negotiations led by the Trump administration. The agreement modernised rules governing trade in goods, services, digital commerce, labour standards and intellectual property across North America.
The pact is scheduled for a formal review in the coming years, a provision that distinguishes it from NAFTA and gives member countries an opportunity to reassess its operation and future direction.