Canada has formally called on the United States and Mexico to renew their trilateral free-trade agreement for another 16 years, a move that comes as the Trump administration intensifies economic and political pressure on Ottawa. In a letter sent Tuesday to U.S. Trade Representative Jamieson Greer and Mexico’s Economy Secretary Marcelo Ebrard, Canada’s minister for U.S. trade, Dominic LeBlanc, urged all three nations to re-sign the United States-Canada-Mexico Agreement (USMCA) before the current review deadline of July 1.
LeBlanc described the pact as “highly beneficial to each of our countries and to the integrated North American economy.” He acknowledged that some parties may seek “improvements” and stressed that Canada “is willing to consider any proposal that can be beneficial to all three nations’ long-term prosperity.” The USMCA, which replaced the North American Free Trade Agreement (NAFTA) in 2020, can be approved for a full 16-year term or subjected to annual reviews if no consensus is reached.
“On July 1, as Ambassador Greer has said publicly, if there is no consensus amongst the three parties to extend for 16 years, the agreement remains in place for 10 more years and there is a series of annual reviews,” LeBlanc noted. He and Canada’s top trade negotiator, Janice Charette, were in Washington, D.C., on Tuesday to meet with Greer, who held the first round of bilateral USMCA talks with Mexico last week. The next round is scheduled for June 16–17 in Washington.
Greer’s office issued a statement after the Mexico talks, saying the United States “continues to emphasize the importance of ensuring the Agreement benefits U.S. manufacturers, farmers, ranchers, workers, service suppliers, and businesses of all sizes, and of addressing free-riding from third countries.” The language signals that Washington is focused on tightening rules of origin and curbing what it sees as unfair advantages for non-member nations.
President Trump has ramped up economic pressure on Canada, seeking more favorable terms for American industries. Canadian Prime Minister Mark Carney has said he wants Trump’s tariffs on Canadian steel, aluminum, automobiles, and lumber reduced or eliminated in these negotiations. In return, the U.S. is pushing for greater access to Canadian dairy markets and a higher percentage of American-made components in North American vehicles.
The tension extends beyond trade. On Monday, Trump responded to Bloomberg reporting on a potential Canadian recession by posting “51st state!” on Truth Social, echoing his earlier calls to annex Canada. U.S. Ambassador to Canada Pete Hoekstra amplified the message by sharing it on X, drawing sharp backlash from Ontario Premier Doug Ford. “I can’t believe I have to say this again, but Canada will never be the 51st state. Canada is not for sale,” Ford wrote on X Tuesday. Trump has also referred to Carney as the “future governor of Canada,” a taunt he previously used against former Prime Minister Justin Trudeau.
The USMCA renewal is a high-stakes test for North American economic integration. With the July 1 deadline looming, all three nations are maneuvering to protect their domestic industries while avoiding a breakdown that could trigger annual reviews and prolonged uncertainty. The outcome will shape trade flows across the continent for years to come.
