The United States will not renew its North American trade agreement with Canada and Mexico in its current form, US Trade Representative Jamieson Greer said on Wednesday. Instead of receiving a long-term extension, the United States-Mexico-Canada Agreement (USMCA) will now undergo annual reviews while remaining in force until its scheduled expiry in 2036.&nbsp;The decision is expected to create fresh uncertainty for businesses across North America because supply chains, particularly in the automobile sector, remain closely integrated. Wednesday marked the deadline for the three countries to decide whether to extend the pact. Although Washington declined to renew it, negotiations will continue unless one of the member countries withdraws.&nbsp;The move follows a February 2026 US Supreme Court ruling that struck down the tariffs, saying the administration had exceeded its executive powers. The ruling came after President Donald Trump imposed a 25 per cent tariff on imports from Mexico and a 25 per cent tariff on imports from Canada on March 4, 2025. Canadian oil and energy products, however, faced a lower 10 per cent tariff.&nbsp;Trump negotiated the USMCA during his first term and signed it into law in 2020 as a replacement for the 1992 North American Free Trade Agreement.&nbsp;&nbsp;At the time, he described it as the "fairest, most balanced, and beneficial trade agreement we have ever signed into law". During his second term, however, he imposed tariffs on nearly all trading partners while keeping exemptions for products covered under the USMCA.&nbsp;"The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed," Greer said in a statement.&nbsp;"The United States will continue to engage with Mexico and Canada to address the agreement's shortcomings and our trade deficits with these countries," he added.&nbsp;A senior US official told reporters that narrowing trade deficits remained a key priority, alongside improving market access in Canada and Mexico. The official also highlighted ongoing disagreements over dairy and corn.&nbsp;Trump had already indicated in June that he was not "looking to renew" the agreement despite having negotiated and praised it during his first presidency.&nbsp;Canada and Mexico had both sought a 16-year extension of the USMCA. With the pact now subject to annual reviews instead of a longer renewal, negotiations on tariffs and sector-specific trade rules could continue for months or even years.

The Trump administration decided not to renew the North American trade pact with Canada and Mexico in its current form, despite the agreement having been negotiated during Trump's first term.

The United States will not renew its North American trade agreement with Canada and Mexico in its current form, US Trade Representative Jamieson Greer said on Wednesday. Instead of receiving a long-term extension, the United States-Mexico-Canada Agreement (USMCA) will now undergo annual reviews while remaining in force until its scheduled expiry in 2036. The decision is expected to create fresh uncertainty for businesses across North America because supply chains, particularly in the automobile sector, remain closely integrated. Wednesday marked the deadline for the three countries to decide whether to extend the pact. Although Washington declined to renew it, negotiations will continue unless one of the member countries withdraws. The move follows a February 2026 US Supreme Court ruling that struck down the tariffs, saying the administration had exceeded its executive powers. The ruling came after President Donald Trump imposed a 25 per cent tariff on imports from Mexico and a 25 per cent tariff on imports from Canada on March 4, 2025. Canadian oil and energy products, however, faced a lower 10 per cent tariff. Trump negotiated the USMCA during his first term and signed it into law in 2020 as a replacement for the 1992 North American Free Trade Agreement. At the time, he described it as the "fairest, most balanced, and beneficial trade agreement we have ever signed into law". During his second term, however, he imposed tariffs on nearly all trading partners while keeping exemptions for products covered under the USMCA. "The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed," Greer said in a statement. "The United States will continue to engage with Mexico and Canada to address the agreement's shortcomings and our trade deficits with these countries," he added. A senior US official told reporters that narrowing trade deficits remained a key priority, alongside improving market access in Canada and Mexico. The official also highlighted ongoing disagreements over dairy and corn. Trump had already indicated in June that he was not "looking to renew" the agreement despite having negotiated and praised it during his first presidency. Canada and Mexico had both sought a 16-year extension of the USMCA. With the pact now subject to annual reviews instead of a longer renewal, negotiations on tariffs and sector-specific trade rules could continue for months or even years.

The Trump administration decided not to renew the North American trade pact with Canada and Mexico in its current form, despite the agreement having been negotiated during Trump's first term.

After tariff blow, Trump refuses to extend US trade pact with Canada and Mexico he negotiated in first term

US Commerce Secretary Howard Lutnick made a blunt criticism of Canada's trading strategy during Semafor’s World Economy Summit on Friday, April 17. He was responding to a Financial Post report which featured former trade negotiator Steve Verheul, who argued that Canada should adopt a "wait-and-see" approach to USMCA negotiations. Lutnick blasted Canada, “they suck”, and it was the “worst strategy”.&nbsp;“Look, we are a $30 trillion economy, right? We are the consumers of the world,” Lutnick said. “Carney has a problem with us. He gets on a plane, and he goes to China. Does he think the Chinese economy’s going to buy his stuff? China is entirely an export-driven economy. So what did he do? He came back, and he said, ‘Oh, we’ll take their electric cars.’ I mean, is this nuts?”&nbsp;Also Read: <a href="https://www.wionews.com/world/trump-iran-talks-strait-of-hormuz-nuclear-deal-differences-1776500874880">Trump acknowledges possible remaining gaps after claiming Tehran 'agreed to everything'</a>

<blockquote class="twitter-tweet" data-media-max-width="560">US Commerce Secretary Howard Lutnick on time being on Canada&#39;s side in trade negotiations: &quot;That is like the worst strategy I&#39;ve ever heard. They suck--&quot; <a href="https://t.co/QC4pCALaPJ">pic.twitter.com/QC4pCALaPJ</a>&mdash; Scott Robertson (@sarobertsonca) <a href="https://twitter.com/sarobertsonca/status/2045225287739129995?ref_src=twsrc%5Etfw">April 17, 2026</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Lutnick had been critical of the Canadian Prime Minister Mark Carney; the relationship between the US and Canada appears to have taken a downturn since Carney's speech at the World Economic Forum in Davos. He declared that the "rules-based international order" is dead and described the current era as a "rupture, not a transition".Lutnick thinks that the wait-and-watch approach is fundamentally flawed since Canada is greatly dependent on the US economy. A clarification from the US Department of Commerce claims that Lutnick was “misquoted”. “Secretary Lutnick, describing our unfair trade imbalance with Canada, explained how Canada sucks off of our $30T economy,” said a spokesperson of the department to several outlets, as reported by The Hill.This confrontation comes just before the US, Mexico and Canada must agree to renew the terms of a trade agreement Trump renegotiated in his first US-Mexico-Canada trade agreement. &nbsp;Canada-US Trade Minister Dominic LeBlanc remains hopeful of reaching a quick agreement.&nbsp;"I believe that we have a lot of things that the American economy needs. That's why I remain optimistic that we will get there," said LeBlanc. Trump thinks USMCA is a “bad deal” and it needs to be “reimagined”. A top US trade negotiator told Politico in December that US President Donald Trump has reportedly threatened to pull out of the deal if it does not match his demands.&nbsp;

US Commerce Secretary Howard Lutnick criticises Canada’s trade strategy and USMCA approach, sparking tensions ahead of key US-Canada-Mexico negotiations.

US Commerce Secretary Howard Lutnick made a blunt criticism of Canada's trading strategy during Semafor’s World Economy Summit on Friday, April 17. He was responding to a Financial Post report which featured former trade negotiator Steve Verheul, who argued that Canada should adopt a "wait-and-see" approach to USMCA negotiations. Lutnick blasted Canada, “they suck”, and it was the “worst strategy”. “Look, we are a $30 trillion economy, right? We are the consumers of the world,” Lutnick said. “Carney has a problem with us. He gets on a plane, and he goes to China. Does he think the Chinese economy’s going to buy his stuff? China is entirely an export-driven economy. So what did he do? He came back, and he said, ‘Oh, we’ll take their electric cars.’ I mean, is this nuts?” Also Read: Trump acknowledges possible remaining gaps after claiming Tehran 'agreed to everything'

US Commerce Secretary Howard Lutnick criticises Canada’s trade strategy and USMCA approach, sparking tensions ahead of key US-Canada-Mexico negotiations.

US Commerce Secretary Lutnick criticises Canada’s trade strategy of wait and watch - 'They suck'

Donald Trump and Justin Trudeau met in Washington, D.C. to place new USMCA deal on track. Watch this video to know more.

WION Wallet: Trump, Trudeau push for trade deal

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After tariff blow, Trump refuses to extend US trade pact with Canada and Mexico he negotiated in first term

US Commerce Secretary Lutnick criticises Canada’s trade strategy- 'They suck'

WION Wallet: Trump, Trudeau push for trade deal