Known as the USMCA, the trade deal was negotiated by the first Trump administration and replaced the quarter-century-old North American Free Trade Agreement, or NAFTA, in 2020. A review of the trade pact was expected in 2026 regardless of Trump’s pledge, due to a requirement in the agreement. But Trump’s proclamation has put Canada and Mexico – the US’ two biggest trading partners – on notice that he may pursue major changes. Trump may also be looking at ways to shrink the US trade deficit, one of his favorite economic measures. The goods trade deficit with Mexico alone increased more than 78% between 2020, the year the USMCA took effect, and the end of 2023.

---

Persons: Donald Trump’s, Trump, –, ”, Francisco Sanchez, Barack Obama, “, Claudia Sheinbaum, Trump’s, Justin Trudeau, Here’s, ” Sanchez, Carla Hills, Pedro Pardo, Gary Hufbauer, “ It’s, Gregory Husisian, Lardner Organizations: Washington CNN —, American Free Trade, Trump, Holland, Knight, Canadian, NAFTA, Consumer Brands Association, Employees, Getty, Peterson Institute for International Economics, ”, International Trade Commission, Foley, firm’s International Trade, Security, Canada Locations: Mexico, Canada, American, North America, Washington, Puebla, AFP, China, Beijing