USMCA renegotiation with interim deals

The United States, Mexico, and Canada are renegotiating the United States-Mexico-Canada Agreement (USMCA) after President Donald Trump declined to extend the pact on July 1, 2026, triggering a 10-year countdown to expiration. U.S. Trade Representative Jamieson Greer testified before the United States — United States Senate Committee on Foreign Relations that he hopes to secure interim trade arrangements with Mexico and Canada by the end of 2026, while pushing thornier issues such as automotive rules of origin, labor, and environmental standards into 2027. Mexico is engaged in bilateral talks with the U.S., having completed a third round and scheduling a fourth for September, while Canada has been excluded from those negotiations. The U.S. has imposed a 50% tariff on approximately $20 billion of Canadian goods, including beer, dairy, and hockey sticks, in retaliation for Canadian countermeasures. Key sticking points include U.S. demands for 50% U.S.-made content in vehicles, which Mexico opposes, and Mexico's request for relief from Section 232 tariffs of 25% on autos and 50% on steel and aluminum. Greer also linked progress on a Mexico deal to non-trade issues such as border security and a water treaty with United States — Texas. The separate bilateral tracks risk undermining the trilateral framework that has defined North American trade for 32 years.