U.S. President Donald Trump said he is not a fan of the CUSMA trade agreement and would prefer the deal be terminated [1, 2].
This stance creates significant uncertainty for North American trade relations as the agreement faces a scheduled review on July 1 [1]. Any move to expire or terminate the deal could disrupt the economic flow between the U.S., Canada, and Mexico.
Speaking during the G7 summit in France, Trump said he only signed the agreement to exit the North American Free Trade Agreement (NAFTA) [2, 3]. He said NAFTA was the worst trade agreement ever made [1, 2].
Trump said he would rather not have the USMCA — the U.S. designation for the same agreement — and suggested it should expire immediately [3, 4]. He said that he dislikes the current framework and prefers that the United States not be bound by the terms of the deal [1, 5].
While Trump said he signed the pact solely to replace NAFTA, some analysts have described this characterization as misleading [5]. These critics suggest the motivations for signing CUSMA were more complex than a simple desire to exit the previous agreement [5].
The president's comments come as the three nations prepare for the upcoming review process [1]. The outcome of this review will determine whether the trade framework remains intact or faces significant restructuring under the current administration.
“"I'm not a big fan of CUSMA."”
The president's openness to terminating CUSMA suggests a potential shift toward more aggressive bilateral negotiations or a return to tariffs. Because the agreement provides the legal framework for the majority of North American trade, a termination or failure to renew during the July 1 review could lead to market volatility and shifted supply chains across the continent.
