Trump has meanwhile taken to disparaging the agreement that took effect during his first term. <\/p>\n
“I’m not a big fan of it,” the president said last month<\/a>. “I would rather not have the agreement, but I may sign it. \u2026 We’ll see what happens.” <\/p>\n The senior administration official said Trump’s “primary” concern is America’s trade deficits. But the negotiations could touch a range of sectors, such as automobiles, where both Canada and Mexico, as well as car companies, are pushing for lower duties, plus areas like aerospace and food products, where the US is a net exporter. <\/p>\n Greer has announced another round of talks with Mexico this month in Mexico City. That came after a June 15-17 meeting in Washington, D.C., which ended with a noncommittal joint statement from the US and Mexican teams that they had “advanced discussions.” <\/p>\n The next steps with Canada are unclear, with no direct talks currently scheduled. <\/p>\n That leaves the trade agreement in a limbo of sorts that could stretch for months or even years. The pact is set to enter a period of annual reviews and will expire completely on July 1, 2036, if a new agreement isn’t reached. <\/p>\n Story Continues <\/p>\n Greer’s statement on Wednesday affirmed that “the Agreement remains in force pending resolution of these issues or until the Agreement’s termination.” Meanwhile, Trump and his team have repeatedly asserted that the US can walk away from the agreement before the 2036 expiration. <\/p>\n ‘Policy uncertainty is extended indefinitely’ <\/p>\n The talks are set to span a variety of sectors, from food to machinery to energy to markets for US farmers, as well as non-trade issues such as immigration and drug trafficking. All carry widespread economic and potentially political consequences. <\/p>\n “The upcoming review will be a defining test for North American cohesion and, hence, global competitiveness,” the Center for Strategic and International Studies wrote in a recent analysis<\/a>. <\/p>\n The Peterson Institute for International Economics identified the 10 US states with the highest relative share of exports to Canada and Mexico<\/a>, noting that nine of those states voted for Trump in 2024. <\/p>\n But for now, the talks have turned into a non-event for markets. <\/p>\n “What could have been a rocky spring and summer … has turned into a much less dramatic affair than we anticipated, largely because of the breakout of the war with Iran,” Henrietta Treyz of Veda Partners wrote in a client note. <\/p>\n She predicted that immediate steps will be meetings where the sides “mostly kick the can on negotiations, which will seep into the late summer and fall, if not beyond.” <\/p>\n Jeffries Securities predicted that “trade keeps flowing, but policy uncertainty is extended indefinitely.”\u00a0 <\/p>\n “We do not believe the market is adequately pricing in the risk of extended negotiations heading into the winter or even 2027,” the analysts wrote. <\/p>\n Business groups, for their part, are urging a long-term extension of the pact to create certainty between the US and its top two trading partners. <\/p>\n The Business Roundtable, an association of more than 200 of America’s top CEOs, on Tuesday published<\/a> “Six Reasons to Extend and Strengthen USMCA,” saying it would lock in “benefits for America.” <\/p>\n The Consumer Technology Association, an influential technology trade organization representing more than 1,200 technology companies, has also been outspoken about the business world’s desire for progress. <\/p>\n “As China races to lead in AI and other emerging technologies, the U.S. can’t afford to compete alone,” Kinsey Fabrizio, the group’s president and CEO, said in a statement<\/a>. <\/p>\n “Here we go again with USMCA this summer and fall,” Ford (F<\/a>) CEO Jim Farley recently told Yahoo Finance<\/a>. He noted that Ford designed its supply chain to move car parts back and forth across the borders with Mexico and Canada to make manufacturing in the US an affordable proposition.\u00a0 <\/p>\n He called the current talks a “hugely important negotiation.” <\/p>\n The first Trump administration negotiated the USMCA to replace the 1994 North American Free Trade Agreement (NAFTA). Trump hailed the USMCA for years before recently souring on it, often saying the sunset clause is his favorite part. <\/p>\n This story has been updated. <\/p>\n Ben Werschkul is a Washington correspondent for Yahoo Finance. <\/p>\n<\/a> President Trump boards a new Air Force One on July 1 in Maryland. Trump traveled to North Dakota and used the new Air Force One aircraft gifted by Qatar’s government. (Andrew Harnik\/Getty Images) \u00b7 Andrew Harnik via Getty Images <\/p>\n
<\/a> President Trump speaks with Canadian Prime Minister Mark Carney at a working lunch with leaders of G7 in June in France (Evelyn Hockstein-Pool\/Getty Images) \u00b7 Pool via Getty Images <\/p>\n
<\/a> Mexican President Claudia Sheinbaum speaks on June 30 in Mexico City. (Jeannette Flores\/ObturadorMX\/Getty Images) \u00b7 ObturadorMX via Getty Images <\/p>\n