U.S. Refuses to Renew Canada-Mexico Trade Deal in Current Form, Talks Hit Snag

The United States has confirmed it will not renew the Canada-United States-Mexico Agreement (CUSMA) in its current form, throwing the continental trade pact into fresh uncertainty. While trade negotiations between Mexico and the U.S. have launched, official talks between Ottawa and Washington have not yet begun, leaving Canadian businesses and workers in limbo.

Canada Left Out of Initial Talks

Conservative trade critic Shuv Majumdar took to social media to voice frustration, stating that 'millions of Canadians are out of work, anxious for their future, living in uncertainty around how to price things, plan things, and grow businesses.' He added, 'Yet still Canada isn't at the table?'

Dominic LeBlanc, Canada's minister in charge of trade, countered that Canada is approaching the discussions 'from a position of strength and with the goal of preserving and strengthening one of the most successful trading relationships in the world.' He emphasised, 'At a time of global economic uncertainty, Canada is a stable, reliable and trusted partner. We have the energy and natural resources the world needs, a world-class workforce, and a predictable business environment attracting the highest investment in decades.'

Experts Downplay Immediate Impact

Carlo Dade, director of international policy and the New North America Initiative at the University of Calgary's School of Public Policy, said the blown deadline 'doesn't mean much to the future of CUSMA as long as there is constructive work and dialogue occurring.' Dade noted in an email, 'I think the market is adjusting to a new normal of uncertainty with the U.S. That said, awareness of the reality also means greater awareness of the cost.'

Dade pointed out that some members of the Trump administration have indicated the U.S. still values the trade agreement. U.S. Trade Representative Jamieson Greer has said there are 'pillars' of the continental trade pact that work well. However, Commerce Secretary Howard Lutnick and senior Trump adviser Peter Navarro have been much more critical. Dade advised, 'Trump is negotiating in public, so we have to discount, heavily discount, what he says, view it through the lens of his seeking leverage.'

Chaos and Uncertainty for North American Trade

Andrew Hale, a fellow at Advancing American Freedom, a conservative advocacy group founded by former U.S. vice-president Mike Pence, said CUSMA was a major achievement during the first Trump administration. He credited former U.S. trade representative Robert Lighthizer for following the law while being a tough negotiator. However, Hale said Trump's current trade actions are now sowing 'chaos' and many people in the administration 'don't get Canada.'

'They're so unpredictable and it's so chaotic. If I knew what their strategy was, I could make a gold mine. It's like asking me if I have a crystal ball,' Hale said. He added that the uncertainty discourages long-term investment because of the deep integration among all three countries. If negotiations drag on, he warned, it could diminish North America's global competitiveness. Annual consultations could also bring increased trade frictions, Hale said, because they 'are never usually harmonious with the Trump administration.' He concluded, 'They push people right to the edge of the cliff every time they have these negotiations.'

This report by The Canadian Press was first published July 1, 2026, with files from Sarah Ritchie in Ottawa and Kelly Geraldine Malone.