Trump Says US ‘Not Looking to Renew’ USMCA Trade Agreement

Reuters’ David Shepardson reported that “President Donald Trump said on Wednesday that the U.S. might not renew its free trade agreement ​with Canada and Mexico and criticized trade deficits with those countries, ‌although he said he was talking with their leaders about the matter.”

“The three countries need to approve a renewal of their existing agreement by July 1 or signal their ​intention to exit the pact, a process that would take 10 ​years and would buy time for alterations,” Shepardson reported. “‘I’m not looking to renew ⁠it,’ Trump said at the White House. ‘We don’t need anything that Canada ​has. We don’t need anything that Mexico has, but they need everything that ​we have. They have to treat us better.'”

Bloomberg’s Courtney Subramanian and Hadriana Lowenkron reported that “the Mexican and Canadian governments did not immediately reply to a request for comment. The next round of US-Mexico talks is set for this month, followed by a third in July. The US and Canada have not yet launched formal negotiations.”

“Trump has privately mused about whether he should exit the pact, but has not yet publicly threatened to do so in his second term. He regularly made such threats during negotiations in his first term,” Subramanian and Lowenkron reported. “The administration has also given preferential treatment to the trade agreement, exempting most USMCA-compliant goods from Trump’s across-the-board tariffs, but undercutting the agreement by applying sectoral levies, such as on vehicles, a key industry upon which the trade deal was designed.”

US Ag Groups Support USMCA Renewal

Agri-Pulse’s Noah Wicks reported that “some farm groups have previously called for the Trump administration to use the review to address trade issues with both countries, and tighten enforcement. However, 156 agricultural groups signed a letter earlier this year supporting the agreement’s renewal, noting that trade cooperation between the three countries ‘affords massive economic benefits.’”

“At a House Ag Committee hearing Wednesday focused on USMCA, a panel of farmers and ag group representatives generally expressed support for the agreement’s renewal, though some called for negotiators to iron out disagreements on dairy and specialty crops in upcoming negotiations,” Wicks reported. “‘Failure to renew USMCA would be catastrophic,’ Jamie Beyer, a Minnesota farmer and American Soybean Association executive committee member, said during the hearing.”

“Dave Puglia, president and CEO of Western Growers, also said his organization supports the continuation of the agreement,” Wicks reported. “However, he called for measures to address a ‘labor cost gap’ between the U.S. and Mexico, a commitment from Mexico to adopt a trust mechanism to protect fresh producer growers and shippers from non-payment due to bankruptcies or insolvencies, and standards and oversight to ensure the safety of Mexican produce.”

Meatingplace’s Frank Fuhrig reported that “in testimony Wednesday to the House Committee on Agriculture, Michael Schumpp, Meat Institute senior director for international affairs, called for Congress and the Trump administration ‘to preserve the agreement’s benefits for American agriculture.’ He called USMCA ‘the world’s gold-standard trade agreement.'”

Value of Ag Exports to Canada and Mexico Up 47% Since USMCA Enacted

Shepardson reported that “the six-year-old United States–Mexico–Canada Agreement and ​its predecessor pact ​have created a ⁠highly integrated North American economy, underpinning nearly $1.6 trillion in annual trilateral trade, but its future hinges on negotiations over the ​coming months.”

“The United States in 2025 had a $46 billion ​trade deficit ⁠in goods with Canada and a $197 billion deficit with Mexico,” Shepardson reported. “Mexico has been the top U.S. trading partner since 2023 and some 80% of Mexican exports go to ⁠the ​United States, while nearly 70% of Canada’s exports ​head to its southern neighbor. Mexico and Canada import nearly one-third of exported U.S. goods.”

Progressive Farmer’s Chris Clayton reported that “since the USMCA was enacted, the value of ag exports to Canada and Mexico has increased by 47% compared to only 18% for the rest of the world sector. Mexico and Canada remain the top two overall markets for U.S. agricultural exports — due in part to a collapse in sales last year to China. At the same time, agricultural trade between the three countries still makes up the bulk of the U.S. agricultural trade deficit at $24.5 billion last year.”

“USDA data shows U.S. agricultural exports to Canada were $28.2 billion in 2025 but we imported $39.3 billion in Canadian agricultural products,” Clayton reported. “Agricultural exports to Mexico in 2025 were $30.6 billion while the U.S. imported $44 billion in agricultural products from Mexico.”

“A new Purdue University study also showed the USMCA has saved U.S. households roughly $700 per year in food costs, mainly due to lower tariffs,” Clayton reported. “Without USMCA, tariffs on food products would increase by an average of 7.4%, which would eliminate those food-cost savings.”