WASHINGTON, July 2. /Dunyo IA/. The White House has declined to extend the “United States–Mexico–Canada Agreement” (USMCA) in its current form, formally initiating the treaty’s review process, reports Dunyo IA correspondent, citing Reuters.

The decision follows the agreement’s first six-year review. Under the terms of the USMCA, the pact will remain in force for another 10 years while undergoing annual reviews. However, the three countries must agree on an updated version before the end of that period, or the agreement will be terminated.

U.S. Trade Representative Jamieson Greer said Washington had decided not to renew the USMCA in its current form and would continue negotiations with Mexico and Canada to address what it considers “shortcomings” in the agreement.

The next round of bilateral talks between the United States and Mexico is scheduled for late July. The discussions are expected to focus on tightening rules of origin for automobiles and other manufactured goods to increase the share of North American-made components and limit preferential trade treatment for products linked to China.

Minister of Economy of Mexican Marcelo Ebrard said Mexico is prepared to work toward resolving the issue, although differences remain over Washington’s proposal to increase the required share of U.S.-made components in manufactured products.

Canada has also expressed its willingness to continue negotiations while seeking the removal of tariffs previously imposed by the administration of U.S. President Donald Trump on Canadian automobiles, steel, aluminum, lumber, and other products.

The USMCA entered into force in 2020, replacing the North American Free Trade Agreement (NAFTA), which had governed trade among the three countries since 1994. The agreement regulates annual trade exceeding 1.6 trillion US dollars.

Washington says the review is necessary because of the persistent U.S. trade deficits with Mexico and Canada. According to U.S. data, the goods trade deficit with Mexico reached 197 billion dollars in 2025, while the deficit with Canada totaled 48.3 billion dollars.

The United States has already revised certain trade terms under the USMCA by imposing 25% tariffs on automobile imports from Mexico and Canada, 50% tariffs on steel and aluminum, and 10% duties on lumber. The measures form part of the Donald Trump administration’s broader policy of encouraging manufacturers to relocate production to the United States and reducing the country’s trade deficit.