Trump Says He Won’t Renew USMCA, Threatens 100% Tariffs on Canada and Mexico

U.S. President Donald Trump said Wednesday at the Oval Office that he is "not looking to renew" the United States-Mexico-Canada Agreement, as the pact faces a July 1 review milestone and could expire in 2036.

“Trump says he may not renew US trade deal with Canada and Mexico President argues USMCA was 'a much better deal' largely because it gave Washington right to reconsider the agreement after 6 years Mucahithan Avcioglu 10 June 2026•Update: 10 June 2026 ISTANBUL US President Donald Trump on Wednesday said he is not seeking to renew the US-Mexico-Canada Agreement (USMCA), which he signed during his first term”

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Trump tied his position to the deal’s termination mechanism, saying "it gave the right to terminate," and he repeated that the United States has trade deficits with Canada and Mexico.

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The agreement underpins about US $2 trillion in annual trade between the United States, Mexico and Canada, and it is subject to a review process this year.

In Canada, Prime Minister Mark Carney told reporters in Ottawa that Canada respects the USMCA commitments, including not concluding free-trade agreements with countries that are not economies of market, while responding to Trump’s threat of 100% tariffs if Canada concluded a deal with China.

Carney also said Canada was making a "retour vers le futur" on vehicles électriques, agriculture and products of the pêche, while the U.S. Treasury secretary Scott Bessent said in an ABC News interview it was possible to impose 100% tariffs on Canada if it concluded a free-trade agreement with China.

Even as Trump cast doubt on renewal, the talks continued: Mexico’s Economy Minister Marcelo Ebrard told reporters at President Claudia Sheinbaum’s press conference that "We have the next round of conversations with the United States next week," and said Mexico’s delegation would be in Washington until at least Thursday June 18.

Ebrard said Mexico would be focused on trade talks "the whole week" and would stay until Friday if necessary, adding that on the 18th he had a long meeting with the person responsible for the USMCA review negotiations for the United States, referring to Ambassador Greer.

Bloomberg Industry

Canada’s trade position was also in motion, with CBC reporting that Dominic LeBlanc and Canada’s chief negotiator Janice Charette met with Greer and his team in Washington last week and that LeBlanc said Canada put proposals on the table to address "long-standing issues that the United States has raised with us."

In the U.S., lawmakers and agriculture leaders urged extension during a House committee on agriculture hearing, where Glenn Thompson said the trade agreement has been "extremely beneficial" for U.S. farmers, ranchers, foresters and agri-businesses.

Trade experts in Canada parsed Trump’s words, with William Pellerin telling CBC News Network that there are "10 years left to this trade agreement unless the U.S. president triggers the escape clause."

The uncertainty around renewal is already shaping business planning, with Bloomberg Industry reporting that industries want more than a decade of certainty but anticipate "years of flux" as the USMCA approaches a joint review period in July.

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Bloomberg Industry said that if the governments do not agree to a 16-year renewal by July 1, annual reviews would become the default for ten more years, while also noting that the worst outcome for many industries would be "the trilateral deal falling apart."

For the auto sector, Jennifer Safavian of Autos Drive America said model line decisions operate on a "five-to-seven year time frame," and she warned that "the uncertainty of USMCA really calls into question where those investments should be made."

In the apparel and footwear industry, Beth Hughes of the American Apparel and Footwear Association said "we will have an annual review going forward, versus a 16-year," as long as the agreement remains trilateral.

Meanwhile, U.S. lawmakers introduced the USMCA Travel and Tourism Resiliency Act, which would require the U.S. Trade Representative to press for a Travel and Tourism Trade Working Group during the next joint revision of the USMCA/ACEUM, with Vern Buchanan saying the legislation would ensure travel and tourism are "fully represented in the next joint revision of the USMCA."