President Donald Trump is considering leaving the USMCA trade deal with Mexico and Canada, asking aides why he shouldn't do it, according to a new report.
Citing people familiar with internal discussions, Bloomberg noted that Trump has so far stopped short from saying he won't renew the agreement, but the possibility exists.
Bilateral talks are set to take place with both countries ahead of a mandatory July 1 review, with U.S. officials indicating relations with Ottawa are currently more difficult. Mexican President Claudia Sheinbaum downplayed the chances of a U.S. exit, while Canada's leadership described recent conversations with Trump as positive but declined to elaborate.
If the deal is not renewed, it could trigger a decade of annual reviews before expiring in 2036, but any country could withdraw with six months' notice. Even the threat of U.S. withdrawal would rattle markets, business groups, and lawmakers, potentially raising tariffs and further complicating trade between the countries ahead of the midterm elections in the U.S.
Trump has already escalated pressure on both neighbors with tariff threats and other trade actions, even as he sends mixed signals about the pact, at times calling it "irrelevant" and at others saying it works for certain purposes. An outright exit could expose Canadian and Mexican exports to higher U.S. duties, invite retaliation, and undermine decades of North American supply-chain integration.
Elsewhere, the outlet noted that allies say Trump's questions about USMCA often reflect a belief that bilateral deals give Washington more leverage, even though experts argue they would be harder to enforce and could ultimately weaken U.S. bargaining power. Some of his advisers have quietly cautioned that exiting the pact would create legal and economic chaos with few clear benefits.
Within the administration, industry groups have been lobbying aggressively to preserve the agreement, warning that even a prolonged period of uncertainty could deter investment in North America. Automakers in particular have argued that USMCA's rules of origin have already reshaped supply chains in ways favorable to U.S. manufacturing.
On Capitol Hill, senior Republicans have also expressed concern that a rupture could undermine U.S. economic and security interests at a time of heightened competition with China. Several lawmakers have suggested they would resist any move toward unilateral withdrawal.
Originally published on Latin Times
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