Overview
- President Donald Trump said he was “not looking to renew,” a stance that has added leverage to negotiations and helped drive a bilateral U.S.-Mexico negotiating round focused on agriculture and energy on June 16.
- U.S. negotiators are seeking much tougher auto rules of origin, including a reported 50 percent U.S.-specific parts requirement and about an 82 percent North American content threshold that would raise production costs and force supply‑chain changes for automakers.
- Canada has publicly tried to calm business concerns with reassurances that the agreement remains in force and that July 1 starts a renewal window rather than immediate expiry, even as Ottawa has been largely excluded from the formal Mexico-focused bilateral talks.
- The administration has kept or imposed unilateral tariffs on autos, steel and aluminum and U.S. officials say duties could remain, a stance that complicates talks and risks higher costs for farmers, manufacturers and consumers if uncertainty persists.
- If the three parties do not unanimously extend USMCA on July 1 the pact will continue under annual joint reviews until 2036, but industry groups warn that prolonged talks or tougher rules could disrupt $1.6 trillion in North American trade and harm farm and manufacturing communities.