U.S. Blocks Long-Term USMCA Renewal; Pact Shifts to Annual Reviews Through 2036
- At the July 1 mandatory joint review, the U.S. declined to renew the United States-Mexico-Canada Agreement for another 16-year term, opting instead for annual reviews through the agreement's scheduled 2036 sunset, according to the BBC and Yahoo Finance.
- U.S. officials said they want to use the review cycle to press Canada and Mexico on bilateral trade deficits and other perceived shortcomings; the existing pact remains in force during renegotiation.
- The move injects fresh uncertainty into North American supply chains and auto, agriculture and energy sectors that had priced in long-term tariff stability under USMCA.