U.S. President Donald Trump declared Wednesday that America would be better off without the United States-Mexico-Canada Agreement, sending a confusing signal about the future of the trilateral trade pact that underpins much of the Canadian economy.<\/p>\n<\/p>\n
“We do better without that agreement,” Trump told reporters in France, where he was attending the G7 summit.<\/p>\n<\/p>\n
Trump’s remarks were muddled throughout. He said he would rather “leave it unsigned” or “have it terminated,” but when pressed for clarification, he added: “I would rather not have the agreement but I may sign it.”<\/p>\n<\/p>\n
When pushed further on whether he intended to withdraw the U.S. from the deal or allow it to roll into annual reviews, Trump said he viewed it as “possibly expiring immediately” \u2014 while simultaneously saying he remained open to keeping it.<\/p>\n<\/p>\n
Trump also said he liked the agreement because it replaced the North American Free Trade Agreement \u2014 the same deal he once called the “best trade agreement ever” during his first administration.<\/p>\n<\/p>\n
Known in Canada as CUSMA<\/strong>, the continental trade agreement is subject to a mandatory review, with July 1 serving as a key milestone. The Trump administration has signalled it will miss that date.<\/p>\n<\/p>\n Missing the deadline triggers an annual rolling review that can last up to a decade, after which the agreement expires if not renewed. Both Canada and Mexico have called for a full 16-year extension<\/strong>.<\/p>\n<\/p>\n Christopher Sands, director of Johns Hopkins University’s Center for Canadian Studies, offered perspective on what July 1 actually means. “It’s like the moment in a poker game where the players lay their cards on the table,” he said.<\/p>\n<\/p>\n Sands explained that each country must signal whether it wants to renew for 16 years, withdraw entirely, or do neither \u2014 continuing under annual review. “Withdrawal is the only option that is unilateral, and renewal requires unanimous agreement,” he said.<\/p>\n<\/p>\n The agreement currently shields Canadian and Mexican exporters from many of Trump’s tariffs \u2014 goods that comply with USMCA rules are exempt from the current global U.S. duty of 10 per cent.<\/p>\n<\/p>\n Canada is nonetheless facing separate U.S. tariffs targeting steel, aluminum, automobiles, and cabinetry<\/strong>, underscoring how much economic pressure Ottawa is already absorbing.<\/p>\n<\/p>\n Most trade experts believe the deep integration of North American industries makes a swift U.S. withdrawal from USMCA unlikely, regardless of Trump’s rhetoric.<\/p>\n<\/p>\n U.S. Trade Representative Jamieson Greer<\/strong> has said there are “pillars” of the agreement that function well and has floated the idea of two separate bilateral deals \u2014 one with Canada, one with Mexico \u2014 rather than a single trilateral pact.<\/p>\n<\/p>\n Formal trade negotiations between the U.S. and Mexico have begun, but no official talks between Washington and Ottawa have yet launched.<\/p>\n<\/p>\n Canada-U.S. Trade Minister Dominic LeBlanc<\/strong> met with Greer on the sidelines of the G7 on Tuesday, saying afterward that discussions with his American counterpart are not a “one-way conversation.”<\/p>","protected":false},"excerpt":{"rendered":" Trump Casts Doubt on Continental Trade Deal at G7 Summit U.S. President Donald Trump declared Wednesday that America would be better off without the United States-Mexico-Canada Agreement, sending a confusing signal about the future of the trilateral trade pact that underpins much of the Canadian economy. “We do better without that agreement,” Trump told reporters […]<\/p>\n","protected":false},"author":4,"featured_media":1165,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,47],"tags":[],"class_list":["post-1166","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","category-world"],"yoast_head":"\nThe Stakes for Canada<\/h3>\n<\/p>\n
Talks Underway \u2014 But Not with Canada<\/h3>\n<\/p>\n