Trump pushes to renegotiate U.S. trade agreement with Mexico and Canada
The formal review of USMCA is scheduled for 2026. However, the president wants to move negotiations forward.

Donald Trump / Jeff Kowalski.
The U.S.-Mexico-Canada trade agreement, known as the USMCA, is not scheduled for a formal review until 2026. However, Trump is pushing forward on the agenda, seeking to open renegotiations well ahead of the originally scheduled date.
Sources close to the administration report that Trump is willing to use a pressure strategy, threatening to impose punitive tariffs on Mexico and Canada to force an advance in the agreement's renegotiation.
Trump has already made it clear that he is considering imposing a 25% tariff on products from Mexico and Canada as of February 1 if agreements satisfactory to the United States are not reached.

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The automotive sector, the focus of the renegotiation
One of the main focuses of the renegotiation is the automotive sector. Trump's advisors reveal that the president is seeking to adjust the pact's rules around vehicle manufacturing to move more auto plants to the United States, which would be key to revitalizing the local industry.
Trump has reportedly nominated Howard Lutnick, his nominee for secretary of commerce, and Jamieson Greer, his pick for U.S. trade representative, to lead the USMCA renegotiation process.
Reactions from Mexico and Canada
Prime Minister Justin Trudeau announced that his government is prepared to take retaliatory measures in Canada. These would include tariffs on strategic U.S. products like Kentucky bourbon and Florida orange juice. The government is also considering imposing taxes on oil exports to the United States, which would increase the price of gasoline for U.S. consumers.
In Mexico, President Claudia Sheinbaum warned that she could take measures similar to those implemented in 2018 when the Mexican government responded to U.S. tariffs on steel and aluminum with levies on key U.S. export products.

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A USMCA reboot in the works
Republican Senator Kevin Cramer, a close Trump ally, assured that a "reset" of USMCA is imminent. According to Cramer, the renegotiation would include issues the president has highlighted, such as combating fentanyl smuggling and increasing contributions from U.S. security and defense trading partners.
Other Republican lawmakers also support Trump's lobbying strategy. Senator Bill Hagerty warned that it would be a mistake to underestimate Trump's willingness to implement them if significant progress is not made in the renegotiation.