--- title: "US Declines to Renew the North American Trade Pact, Triggering a Decade of Annual Reviews" description: "The United States refused Tuesday to extend the trade agreement that governs more than a trillion dollars in annual commerce with Canada and Mexico, opening a prolonged period of uncertainty that could stretch to 2036." category: "World" category_url: https://herald.la/category/world author: "Tyler Grant" published: 2026-07-01T21:48:00.000Z updated: 2026-07-01T21:48:00.000Z canonical: https://herald.la/article/us-declines-to-renew-the-north-american-trade-pact-triggering-a-decade-of-annual tags: ["USMCA", "trade", "North America", "tariffs", "Canada", "Mexico"] --- # US Declines to Renew the North American Trade Pact, Triggering a Decade of Annual Reviews The United States refused Tuesday to extend the trade agreement that governs more than a trillion dollars in annual commerce with Canada and Mexico, opening a prolonged period of uncertainty that could stretch to 2036. The pact that has knit together North American manufacturing for a generation just entered an uncertain new phase. ## What happened at the joint review Under the terms of the United States-Mexico-Canada Agreement, the three countries were required to hold a joint review of the deal by July 1, 2026 — the first since it took effect in 2020. They met virtually, and Washington declined to sign on to a long-term extension. "The United States did not agree to renew the USMCA in its current form," U.S. Trade Representative Jamieson Greer said in [a statement](https://ustr.gov/about/policy-offices/press-office/press-releases/2026/july/ambassador-greer-issues-statement-usmca-joint-review), adding that a "rubberstamp of the Agreement is not in the national interest." He said the U.S. would keep engaging with its neighbors to address "the Agreement's shortcomings and our trade deficits." ## What 'not renewing' actually means The move does not end the deal. Because the three parties did not unanimously agree to a 16-year extension, the agreement now enters a mandatory schedule of annual reviews. If all three reach agreement in any year, the pact can still be extended; if they never do, it expires in 2036. Throughout that window it remains in force, so no tariffs change automatically as a result of Tuesday's decision. A country may exit with six months' notice. ## What is at stake The agreement covers well over a trillion dollars in annual trade across the continent, and roughly 85 percent of Canadian exports still enter the United States tariff-free under its rules. Those rules, however, now sit alongside a separate layer of sectoral tariffs the Trump administration has imposed on steel, aluminum, autos and lumber — levies critics say already undercut the pact's guarantees. Business groups warned that a year-to-year horizon chills the long-term investment that supply chains depend on. Washington has signaled it wants a tougher deal, including higher North American content requirements for automobiles and changes to Canadian dairy and digital rules, with reducing trade deficits its stated aim. ## Canada and Mexico respond Canada struck a supportive but wary tone. Trade Minister Dominic LeBlanc said Ottawa "reaffirmed Canada's unwavering support" for renewal, [The Globe and Mail reported](https://www.theglobeandmail.com/business/article-trump-administration-refuses-to-renew-usmca-trade-deal/), while pressing to lift the sectoral tariffs still hitting Canadian goods. Prime Minister Mark Carney said he wanted "a new deal," not a quick signature on the old one. Mexican President Claudia Sheinbaum, who had backed a 16-year extension, sought to lower the temperature. "The joint work continues — it's not as if everything ends today," she told reporters, [CBC News reported](https://www.cbc.ca/news/world/cusma-usmca-trump-extension-renewal-9.7255204). U.S. and Mexican negotiators are set to meet again the week of July 20; formal talks with Canada have yet to begin. ## Sources - [Ambassador Greer issues statement on the USMCA joint review](https://ustr.gov/about/policy-offices/press-office/press-releases/2026/july/ambassador-greer-issues-statement-usmca-joint-review) - [Trump administration refuses to renew USMCA trade deal](https://www.theglobeandmail.com/business/article-trump-administration-refuses-to-renew-usmca-trade-deal/) - [U.S. declines to extend CUSMA trade deal with Canada, Mexico](https://www.cbc.ca/news/world/cusma-usmca-trump-extension-renewal-9.7255204)