The US administration is considering withdrawing from the United States-Mexico-Canada Agreement (USMCA), Bloomberg reported, citing its sources.
US President Donald Trump has secretly expressed the idea of Washington withdrawing from the agreement, which he signed during his first term. The Office of the US Trade Representative, Jamieson Greer, said the terms of the agreement, approved in 2019, were not in the national interest and stressed that the administration intends to give the head of state room to make decisions.
The US withdrawal from the USMCA will result in immediate economic costs, as more categories of Canadian and Mexican exports will be subject to tariffs, while they are currently exempt from tariffs previously imposed by Washington due to the agreement.
The USMCA is subject to a mandatory review before a possible extension, scheduled for July 1 of this year. If extended, the agreement would remain in force for another 16 years. However, if no agreement is reached, the treaty would be subject to annual reviews until its expiration in 2036. The agreement covers goods and services worth approximately USD 2 trillion.