Why Trump is unlikely to scrap CUSMA
CUSMA future remains uncertain as Trump revives trade threats and review talks See why a full withdrawal looks unlikely for Canada, the U.S. and Mexico
U.S. President Donald Trump has again raised doubts about the future of CUSMA, the trade agreement between Canada, the United States and Mexico. But despite his public criticism and talk of not renewing the deal, the agreement would stay in force unless a country formally gives six months’ notice to withdraw.
The article outlines five reasons a full pullout appears unlikely. Major U.S. industry groups, including manufacturers, automakers and agriculture interests, want the deal preserved because they say it supports jobs, exports and investment. At the same time, the scheduled July 1 review is already drawing Canada and Mexico into negotiations, with the U.S. holding formal talks with Mexico and continuing discussions with Canada.
The piece also notes that CUSMA remains important to the Canadian economy, covering about $1.3 trillion in crossborder trade and protecting most Canadian exports from tariffs. Beyond trade, Trump faces political pressure from inflation, weak approval ratings and Republican concerns about the economic fallout of ending the pact. Trade experts quoted in the article say his public threats may be part of a familiar negotiating strategy rather than a sign of imminent withdrawal.