Trump Declines to Extend USMCA Beyond 2036, Leaving Current Terms in Place

President Donald Trump has decided not to renew the United States-Mexico-Canada Agreement, The American Conservative reported. The agreement, which was up for review in 2026, will stay in force until 2036 unless all three countries agree to extend it. The USMCA replaced the North American Free Trade Agreement and was originally negotiated by Trump during his first term.

In June 2026 Trump told reporters the deal “gave the right to terminate,” a provision he is now exercising. U.S. goods trade deficits with both partners grew after the pact entered into force. The deficit with Mexico rose from $111 billion in 2020 to $197 billion in 2025.

The deficit with Canada increased from $14 billion to $48 billion over the same period. Manufacturing’s share of U.S. GDP fell from just over 10 percent in 2020 to 9.4 percent as of July 2026. Employment in the sector is also lower than in January 2020.

During the 2025 Liberation Day tariff campaign the administration imposed duties on some Canadian and Mexican goods under border-emergency authorities, though USMCA-qualifying products kept preferential treatment. The administration continues to seek tighter automotive rules of origin in ongoing talks with Mexico and Canada.