US Official Says USMCA Fails to Reduce Trade Deficit

A senior U.S. official has said that the USMCA agreement has not lowered the U.S. trade deficit or provided sufficient access to Canadian and Mexican markets. The official noted that former President Trump had already altered the agreement through new tariff policies and that the U.S. Trade Representative will continue to discuss further changes with Congress and the public, with the possibility of new negotiations. There is no interest in long‑term talks about the USMCA, and the U.S. may create separate trade protocols with Canada and Mexico during the remainder of the Trump administration. Negotiations with Mexico are scheduled for the week ending July 20 to continue discussions on rules of origin and economic security. For automobiles and other industrial goods, stricter rules of origin are deemed necessary in North America. The government is also reviewing aerospace supply chains to determine tariff policies. Canadian Minister L'Blanc confirmed the importance of ongoing dialogue and finding ways to secure trade and investment frameworks among Canada, the U.S., and Mexico, noting that the USMCA remains in force until 2036.