President Donald Trump is privately deliberating the possibility of withdrawing the United States from the United States-Mexico-Canada Agreement (USMCA), the trilateral trade deal his administration negotiated and finalized during his first term. According to a report by Bloomberg, the President has recently asked senior aides to articulate reasons why the U.S. should remain in the pact, signaling a potential shift in policy regarding the North American economic bloc.
Sources familiar with the matter indicate that while President Trump has not reached a final decision, his inquiries suggest a renewed skepticism toward the agreement that replaced the North American Free Trade Agreement (NAFTA). The USMCA, which was signed into law in 2020, was previously touted by the administration as a landmark achievement and a fulfillment of promises to modernize trade relations and protect American manufacturing interests.
The reported discussions come at a critical juncture for the agreement. The pact includes a unique “sunset clause” that necessitates a joint review by all three nations six years after its entry into force. With the six-year anniversary approaching in July 2026, the member nations are preparing to decide whether to extend the agreement for another 16 years. The President’s private questioning of the deal’s value adds a layer of complexity to the upcoming review process.
Economic analysts suggest that a U.S. withdrawal from the bloc would introduce significant volatility into the North American market. The USMCA governs over $1.5 trillion in annual trade and is deeply integrated into continental supply chains, particularly within the automotive, energy, and agricultural sectors. A dissolution of the agreement could potentially result in the reinstatement of pre-1994 tariff levels, fundamentally altering the cost of doing business across the borders.
Administration officials have not publicly commented on the specific nature of the private conversations reported by Bloomberg. Historically, the President has utilized the threat of withdrawal and the imposition of tariffs as leverage to secure concessions during trade negotiations. It remains unclear if the current deliberations represent a definitive move toward exiting the deal or a strategic posture ahead of the mandatory review period later this year.
