{"id":32338,"date":"2026-07-02T01:25:38","date_gmt":"2026-07-02T05:25:38","guid":{"rendered":"https:\/\/design-providers.com\/rise\/u-s-decides-not-to-renew-usmca-triggers-annual-reviews\/"},"modified":"2026-07-02T01:25:38","modified_gmt":"2026-07-02T05:25:38","slug":"u-s-decides-not-to-renew-usmca-triggers-annual-reviews","status":"publish","type":"post","link":"https:\/\/design-providers.com\/rise\/u-s-decides-not-to-renew-usmca-triggers-annual-reviews\/","title":{"rendered":"U.S. Decides Not to Renew USMCA, Triggers Annual Reviews"},"content":{"rendered":"\n

Welcome back to World Brief, where we\u2019re looking at the fate of the U.S.-Mexico-Canada<\/strong> trade agreement, indirect U.S.-Iran<\/strong> technical talks on the Strait of Hormuz, and joint Japan-India<\/strong> efforts to bolster supply chain security.<\/p>\n

From \u2018Best Agreement\u2019 to Not Good Enough<\/strong><\/h3>\n

The United States decided on Wednesday not to renew its trilateral trade agreement<\/a> with Mexico and Canada. \u201cWe are not going to rubber-stamp renewal, not in its current form,\u201d a senior U.S. administration official told reporters. Instead, Washington opted to conduct annual reviews of the deal\u2019s conditions until its term expires in 2036, paving the way for sweeping renegotiations that could upend nearly $2 trillion in annual goods and services.<\/p>\n

Welcome back to World Brief, where we\u2019re looking at the fate of the U.S.-Mexico-Canada<\/strong> trade agreement, indirect U.S.-Iran<\/strong> technical talks on the Strait of Hormuz, and joint Japan-India<\/strong> efforts to bolster supply chain security.<\/p>\n

From \u2018Best Agreement\u2019 to Not Good Enough<\/strong><\/h3>\n

The United States decided on Wednesday not to renew its trilateral trade agreement<\/a> with Mexico and Canada. \u201cWe are not going to rubber-stamp renewal, not in its current form,\u201d a senior U.S. administration official told reporters. Instead, Washington opted to conduct annual reviews of the deal\u2019s conditions until its term expires in 2036, paving the way for sweeping renegotiations that could upend nearly $2 trillion in annual goods and services.<\/p>\n

U.S. President Donald Trump first proposed the United States-Mexico-Canada Agreement (USMCA) during a G-20 summit in 2018 as an option to replace the North American Free Trade Agreement, which he had argued was not in the United States\u2019 best interests. \u201cUSMCA is the fairest, most balanced, and beneficial trade agreement we have ever signed into law,\u201d Trump told<\/a> supporters in 2020 after its implementation. \u201cIt\u2019s the best agreement we\u2019ve ever made.\u201d<\/p>\n

Mexico and Canada were similarly happy with the deal. In the weeks leading up to Wednesday\u2019s renewal deadline, both Mexico City and Ottawa expressed their desire to extend the agreement.<\/p>\n

However, Trump has since soured<\/a> on his own brainchild, insisting that it hasn\u2019t done enough to stop outsourcing and has contributed to the United States\u2019 trade deficits with both countries. \u201cWe don\u2019t need anything that Canada has, we don\u2019t need anything that Mexico has, but they need everything that we have,\u201d Trump said in June. \u201cThey have to treat us better.\u201d<\/p>\n

\u201cWhile a trade deficit is an accounting spasm, it consumes the attention of Trump and thus his trade team,\u201d FP\u2019s Keith Johnson told World Brief. Since taking office in January 2025, the White House has tried leveraging tariffs to force Mexico and Canada into what it considers fairer trade practices. Yet a U.S. Supreme Court decision in February that rejected Trump\u2019s sweeping global tariffs have stymied these efforts, forcing the administration to seek alternate methods to make Mexico City and Ottawa pay up.<\/p>\n

By triggering yearly reviews of USMCA, Washington opens the door for new trade negotiations with its neighbors. The United States and Mexico have already begun such talks, with a third round scheduled to kick off in Mexico City on July 20. But similar conversations with Ottawa have yet to begin, as Trump\u2019s tariffs and repeated threats to make Canada the United States\u2019 \u201c51st state\u201d have damaged bilateral ties.<\/p>\n

Renegotiations are expected to focus on measures that encourage more U.S. manufacturing<\/a>. One such condition could require that half of a vehicle\u2019s components be made in the United States for that company to receive reduced tariff rates. Still, the senior U.S. administration official told reporters on Wednesday that it is hard to envision relief for tariffs on steel and aluminum since the goal is to reduce the U.S. trade deficit.<\/p>\n

The Trump administration \u201cwill continue to engage with Mexico and Canada to address the Agreement\u2019s shortcomings,\u201d U.S. Trade Representative Jamieson Greer<\/a> said on Wednesday.<\/p>\n

In the meantime, the United States will have to walk a fine line between demanding that Mexico and Canada pursue trade reforms and not pushing both countries into China\u2019s arms. \u201cFor national security reasons<\/a> \u2026 I want to have our supply chain sourced from this hemisphere,\u201d Greer said in May.<\/p>\n

Yet Mexican Economy Secretary Marcelo Ebrard warned<\/a> last week that annual reviews would likely create instability that could make it difficult for Mexico City to phase out its reliance on Beijing. \u201cIf you drag us into a constant review process, you\u2019re going to choke off investment,\u201d Ebrard said. \u201cThat completely defeats the purpose of replacing your Asian suppliers. You can\u2019t have it both ways.\u201d<\/p>\n

Today\u2019s Most Read<\/strong><\/h3>\n

What We\u2019re Following<\/strong><\/h3>\n

Indirect Hormuz talks. <\/strong>U.S. and Iranian negotiators held indirect technical talks<\/a> in Doha, Qatar, on Wednesday focused on determining control over the Strait of Hormuz. Tehran maintains that it has sole authority over the strategic waterway, through which roughly one-fifth of the world\u2019s oil normally transits, and it has pushed for the right to levy fees on ships traversing the thoroughfare. However, Washington insists that no single country should have exclusive control over the strait and that charging transit fees would violate international law.<\/p>\n

Indirect talks began on Tuesday, with U.S. envoy Steve Witkoff and Trump\u2019s son-in-law Jared Kushner meeting with Qatari mediators, including the country\u2019s prime minister. The Qataris also met with Iranian officials, led by Deputy \u200cForeign Minister \u2060Kazem Gharibabadi, who reportedly prioritized the potential release of frozen Iranian assets, as promised under a U.S.-Iran memorandum of understanding. There are no plans for direct meetings in the near future.<\/p>\n

But with both sides still at an impasse, concerns are growing that active fighting could reignite, especially after U.S. and Iranian forces engaged in tit-for-tat strikes over the weekend. Even Trump has reportedly considered returning to all-out war<\/a> with Iran, holding multiple conversations with Defense Secretary Pete Hegseth and Gen. Dan Caine, the chairman of the Joint Chiefs of Staff, in recent days.<\/p>\n

Yet global markets appear more optimistic<\/a>. West Texas Intermediate crude on Wednesday reached its lowest price since March, hitting \u2060just under $69 \u200ba barrel. Brent futures also went down to nearly $72 a barrel.<\/p>\n

An LNG partnership. <\/strong>Japanese Prime Minister Sanae Takaichi and Indian Prime Minister Narendra Modi are set to sign a trade deal<\/a> that would bolster supply chain security, specifically for liquefied natural gas (LNG), during a summit that began on Wednesday. The pact would direct Tokyo and New Delhi to establish a joint task force to coordinate LNG stockpiling, promote information-sharing, and improve energy cooperation. Both countries hope to mitigate the impact of the Iran war, as instability in the Strait of Hormuz has greatly disrupted global energy markets.<\/p>\n

The two leaders\u2019 three-day summit, held in India, is also expected to touch on artificial intelligence, critical minerals, pharmaceuticals, and semiconductors as well as regional security concerns, such as efforts to strengthen the Quadrilateral Security Dialogue and counter Chinese influence in the Indo-Pacific. Takaichi is hoping that closer Japan-India ties<\/a> will help curb Beijing\u2019s sway.<\/p>\n

Bilateral trade in the 2025-26 fiscal year reached $27.5 billion<\/a>, with Japanese investments in India totaling $3.2 billion between April and December 2025. Tokyo is among New Delhi\u2019s largest investors, and last year, Takaichi pledged to more than double her country\u2019s investments to more than $61 billion over the next decade.<\/p>\n

Political targets. <\/strong>Three firebomb attacks early Wednesday targeted<\/a> members of Greece\u2019s ruling New Democracy party. According to local authorities, crude explosive devices that used camping gas canisters were discovered outside the residences of several party members in the city of Thessaloniki. At least one person was killed<\/a> and four others hospitalized, including parliamentary candidate Afroditi Nestora, who is being treated for burns, as well as members of her family.<\/p>\n

\u201cThe world of New Democracy is not intimidated,\u201d Konstantinos Kyranakis, the conservative party\u2019s political committee secretary, wrote<\/a> on X. The bombings were a \u201cfull-fledged terrorist attack on the homes of New Democracy executives,\u201d Kyranakis said, as \u201cthose who carried it out intended to kill.\u201d<\/p>\n

Politically motivated attacks are relatively frequent<\/a> in Greece, though assaults on symbols of power and wealth rarely cause injuries. However, in June 2024, a gasoline bomb injured a police officer guarding the home of a top judge in Athens, and roughly a year later, a bomb outside the residence of the president of Greece\u2019s association of prison guards caused minor injuries to two individuals.<\/p>\n

Odds and Ends<\/strong><\/h3>\n

Trump earned at least $2.2 billion during the first year of his second term, including around $1.4 billion from his family\u2019s cryptocurrency enterprises, a new filing released on Tuesday revealed<\/a>. That is a massive boost from the roughly $622 million that his businesses took in during 2024. Trump and his relatives have repeatedly been accused of using the White House to leverage deals with foreign governments, including a $500 million agreement<\/a> with an investment firm tied to the United Arab Emirates. Trump on Wednesday dismissed such concerns, telling reporters<\/a> that he has \u201cfunds that run my money\u201d and that \u201cI never even speak to them.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Welcome back to World Brief, where we\u2019re looking at the fate of the U.S.-Mexico-Canada trade agreement, indirect U.S.-Iran technical talks on the Strait of Hormuz, and joint Japan-India efforts to bolster supply chain security. From \u2018Best Agreement\u2019 to Not Good Enough The United States decided on Wednesday not to renew its trilateral trade agreement with […]<\/p>\n","protected":false},"author":1,"featured_media":32339,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg","fifu_image_alt":"","footnotes":""},"categories":[11611],"tags":[5705,6287,22511,12083,11749,1056,11954,13033,22401,1307,1053,12086,22513,955,11614,21757,22512],"class_list":["post-32338","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-spyballoon-global-news","tag-annual","tag-canada","tag-decides","tag-donald-trump","tag-homepage_regional_americas","tag-mexico","tag-paywall-free","tag-post-to-buffer","tag-renew","tag-reviews","tag-tariffs","tag-trade-policy-agreements","tag-triggers","tag-u-s","tag-united-states","tag-unpaid-in-apple-news","tag-usmca"],"rttpg_featured_image_url":{"full":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",0,0,false],"landscape":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",0,0,false],"portraits":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",0,0,false],"thumbnail":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",150,150,false],"medium":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",300,300,false],"large":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",1024,1024,false],"1536x1536":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",1536,1536,false],"2048x2048":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",2048,2048,false],"post-thumbnail":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",370,265,false],"kava-thumb-s":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",150,85,false],"kava-thumb-s-2":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",230,230,false],"kava-thumb-m":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",400,400,false],"kava-thumb-m-vertical":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",370,500,false],"kava-thumb-m-2":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",570,450,false],"kava-thumb-l":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",1170,650,false],"kava-thumb-xl":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",1920,1080,false],"kava-thumb-masonry":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",600,999,false],"kava-thumb-justify":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",640,640,false],"kava-thumb-justify-2":["https:\/\/foreignpolicy.com\/wp-content\/uploads\/2026\/07\/USMCA-GettyImages-2265183468.jpg",1280,640,false]},"rttpg_author":{"display_name":"#RiseCelestialStudios","author_link":"https:\/\/design-providers.com\/rise\/author\/ralph-c\/"},"rttpg_comment":0,"rttpg_category":"SPYBALLOON GLOBAL NEWS<\/a>","rttpg_excerpt":"Welcome back to World Brief, where we\u2019re looking at the fate of the U.S.-Mexico-Canada trade agreement, indirect U.S.-Iran technical talks on the Strait of Hormuz, and joint Japan-India efforts to bolster supply chain security. 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