Tensions Rise: USMCA Faces Reform Talks Amid Trade Strains

U.S. and Mexican officials have commenced discussions on potential reforms to the USMCA, focusing on rules of origin and worker defense. Mexican exports reached a high in 2025, while U.S.-Canada relations deteriorate over looming tariffs. The scheduled review of the trade pact could lead to pivotal changes.

In a pivotal move, U.S. Trade Representative Jamieson Greer and Mexican Secretary of Economy Marcelo Ebrard have agreed to initiate formal discussions on potential reforms to the United States-Mexico-Canada Agreement (USMCA), as per Greer's office. Discussions will address stronger rules of origin, critical mineral collaboration, and defenses against manufactured goods dumping.

The timeline for these talks remains undisclosed, with no confirmation if Canada will participate. Under the 2020 trilateral deal, the U.S., Mexico, and Canada must review the pact by July 1, its sixth anniversary, with options to renew it for another 16 years or propose modifications.

Amidst record-high Mexican exports and escalating U.S.-Canada trade tensions, the review comes at a crucial time. Mexican exports topped $665 billion in 2025, and President Trump's tariff threats toward Canada signal strained relations. As the review proceeds, stakeholders remain vigilant over possible shifts in North America's trade landscape.