What’s on the Table for Renegotiation of the USMCA?
Reiterating his concerns about unauthorized migration, fentanyl trafficking and trade deficits, U.S. President Donald Trump said Thursday that he will impose tariffs of 25 percent on goods from Canada and Mexico beginning Saturday. Trump has been threatening the tariffs as part of an effort to pressure the neighboring countries into early renegotiations of the USMCA trade accord, The Wall Street Journal reported Jan. 21. The free trade agreement is currently scheduled for a review in 2026. How likely are the United States, Mexico and Canada to start early on renegotiating the deal, and what are the main parts of the agreement that could be changed? What will each of the three countries want in a renegotiated deal? What will be the economic impact for the three countries of an altered USMCA, and which sectors will be most affected?