President Trump is threatening to abandon the USMCA trade agreement—his own signature achievement from his first term—using it as leverage to extract even tougher concessions from Canada and Mexico during the pact’s mandatory six-year review.
Story Highlights
- Trump signals potential U.S. withdrawal from USMCA during its first mandatory review period
- Business groups and farmers warn that even threats create investment uncertainty and supply chain disruption
- The move represents unprecedented willingness to dismantle his own “America First” trade victory for greater leverage
- Withdrawal threats target persistent trade deficits and enforcement disputes with Canada and Mexico
Trump Uses USMCA Review as Negotiating Weapon
President Trump and his trade team are signaling that U.S. withdrawal from USMCA remains “on the table” during the agreement’s built-in six-year review process. Senior administration officials have indicated all options are available if Canada and Mexico refuse to accept tougher rules of origin, stronger enforcement mechanisms, and provisions aimed at reducing U.S. trade deficits. This represents a dramatic escalation of Trump’s transactional approach to trade agreements, treating even his own signature achievement as expendable leverage rather than settled policy.
Business Community Sounds Alarm Over Trade Uncertainty
Major business groups, agricultural organizations, and manufacturers are urging the administration to use the review process for incremental improvements rather than wholesale renegotiation or withdrawal. Industry leaders warn that mere threats of terminating USMCA inject dangerous uncertainty into cross-border supply chains that underpin hundreds of billions in trade. Auto manufacturers, farmers, and logistics companies depend on predictable tariff-free access across North American borders, making them particularly vulnerable to policy volatility that could delay investments and disrupt just-in-time production systems.
Strategic Risks of Abandoning North American Integration
Trump’s willingness to threaten USMCA withdrawal reflects his administration’s view that even successful trade agreements must continuously deliver measurable wins for American workers and businesses. However, dismantling the pact could undermine broader U.S. strategic goals of building resilient, “friend-shored” supply chains away from China. The threat also risks damaging U.S. credibility as a reliable negotiating partner, potentially pushing Canada and Mexico toward alternative trade relationships while harming American exporters who have benefited from expanded market access under the current framework.
The USMCA review process was designed to allow periodic adjustments, but Trump’s explicit withdrawal threats represent a departure from traditional diplomatic practice. Congressional leaders from both parties, particularly those representing border and agricultural states, have expressed concern about the economic disruption that could result from terminating the agreement. This tension between Trump’s maximum-pressure negotiating style and the business community’s desire for stability will likely define the coming months as the review process unfolds.
Sources:
Business Groups Urge USMCA Renewal; Greer Says Withdrawal Possible
Six Things to Know About USMCA and America’s Agriculture
