USMCA Exit Triggers Countdown for Trade Agreement's Future

WHO:

Bloomberg - President Trump signed the US-Mexico-Canada Agreement (USMCA) during his first term.

KSL News - Trade Representative Jamieson Greer is involved in the negotiations.

KSL News - Greta Peisch, a former trade representative general counsel, commented on the situation.

KSL News - Trade Minister Dominic LeBlanc is the Canadian counterpart in discussions.

WHAT:

Bloomberg - The USMCA is the framework for nearly $2 trillion in annual trade among the U.S., Mexico, and Canada.

KSL News - The U.S. is expected to formally declare it will not extend the USMCA, starting a decade-long countdown to wind down the North American free trade zone.

KSL News - A six-year review session will begin as part of a "sunset clause" negotiated by Trump’s administration.

KSL News - The North American trade pact would expire on July 1, 2036, if no agreement is reached.

KSL News - Greer has scheduled a third round of negotiations with Mexico for the week of July 20.

KSL News - The U.S. demands that all North American-built vehicles contain 50% U.S.-specific content.

WHERE:

KSL News - The negotiations are taking place in Washington, D.C.

KSL News - The U.S. is currently holding formal negotiations with Mexico only.

WHEN:

KSL News - The formal declaration by the U.S. is expected to occur on a Wednesday.

KSL News - The North American trade pact would expire on July 1, 2036.

WHY:

KSL News - The U.S. is seeking to boost U.S. and regional content in North American automotive production and implement trade protections against Chinese goods.

KSL News - Trump has expressed a preference for maintaining steep tariffs on Mexican and Canadian autos, steel, and aluminum instead of renewing the USMCA.

HOW:

KSL News - The review and sunset process is separate from a termination clause that could trigger a U.S. withdrawal from the pact within six months.

(UPDATED July 1, 2026 17:43 UTC)

President Trump signed the US-Mexico-Canada Agreement during his first term, which serves as the framework for nearly $2 trillion in annual trade among the U.S., Mexico, and Canada. The U.S. is expected to formally announce it will not extend the USMCA, starting a decade-long countdown to the agreement's expiration on July 1, 2036, while negotiations are currently taking place in Washington, D.C., with a third round scheduled with Mexico for the week of July 20. The U.S. aims to increase regional content in automotive production and maintain tariffs on goods from Mexico and Canada, as part of a broader strategy to protect American industries.