USMCA News Updates

U.S. Commerce Secretary Howard Lutnick dismissed as “political noise” the moves in recent days by Canada’s Prime Minister Mark Carney to strengthen trade relations with China.

“We built our entire vehicle business as an industry between Canada, Mexico and the U.S.,” Ford CEO Jim Farley said Jan. 15 in a Bloomberg TV interview. “We have to get this revised.”

USMCA was one of Trump’s signature achievements during his first term, replacing the 1992 North American Free Trade Agreement. The deal is subject to a mandatory review this year.

But there are still several policy areas either with loose ends from 2025 or with unchecked boxes on the administration's to-do list. The pending issues span trade, safety, technology and more.

Ambassador Kirsten Hillman said in a letter it is the right time to put in place someone who will oversee talks about the United States-Mexico-Canada Agreement that is up review in 2026.

President Donald Trump signaled Dec. 8 that he could impose fresh tariffs on agricultural products, including Canadian fertilizer and Indian rice.

Mexican President Claudia Sheinbaum’s plan to impose steep tariffs on Chinese imports has been delayed until at least December as mounting opposition stalls congressional debate.

Trump had set a Nov. 1 deadline to raise the fentanyl-related tariffs he imposed on certain Mexican goods to 30% from 25%. The levies apply to products that are not protected by the USMCA.

Stellantis declined to comment on conversations with the government. It has confirmed it’s adding a third shift at an Ontario facility and described Canada as “very important” to its plans.

While questions remain around transshipments, Jason Schenker of Prestige Economics said, “Mexico’s going to be a very big winner” when the trade pact is renegotiated.