The administration of U.S. President Donald Trump is expected to formally announce on Wednesday that it will not extend the U.S.-Mexico-Canada Agreement (USMCA), activating the pact’s sunset review process. The move will begin a six-year review period under the agreement’s sunset clause, while also starting a decade-long timeline that could see the North American trade pact expire on July 1, 2036, if no consensus is reached. Trade officials from the three countries are expected to meet virtually to discuss the agreement’s future.
Although the announcement does not terminate USMCA, it signals Washington’s push for major revisions to the trade pact. The U.S. is seeking stricter rules requiring higher American and regional content in North American vehicle production, along with stronger safeguards to prevent Chinese goods from benefiting under the agreement. Negotiations with Mexico are expected to continue later this month, while formal talks with Canada have yet to be scheduled.
The proposed changes include increasing U.S.-specific content in North American-built vehicles to 50%, raising overall regional content requirements for tariff benefits. Mexican officials have indicated that both countries agree on the need to strengthen manufacturing, reduce reliance on Asian auto parts, and address transshipment concerns, though discussions continue over how to achieve those goals. If no agreement is reached, annual review sessions will continue until 2036, when the pact could automatically expire unless all three nations agree to extend it.
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