US to exit USMCA, steering toward separate deals with Canada and Mexico

Six years after USMCA took effect, the Trump administration said it will terminate the pact and launch a decade-long process to amend it, with the possibility of separate bilateral deals with Mexico and Canada. Officials argue USMCA modernized trade but failed to rebalance deficits; Canada supports preserving the agreement and Mexico is in talks. The plan would use periodic Joint Reviews rather than letting the deal run on autopilot, while business groups note trilateral trade has grown and urge a strong, durable framework. Brookings data show intraregional trade rising from about $1.07 trillion in 2020 to over $1.63 trillion in 2024.