Politico cited U.S. Trade Representative Jamieson Greer in a recent podcast interview, stating that President Donald Trump might withdraw from the United States-Mexico-Canada Agreement (USMCA) next year. Greer explained the president's stance: "The president's view is that he only wants beneficial agreements. The reason we included a review phase in the USMCA was to allow for modifications, reassessments, or withdrawal from the agreement if needed."

Greer also raised the possibility of the U.S. negotiating separately with Canada and Mexico, splitting the agreement into two parts. The Trade Representative discussed this idea with President Trump this week.

U.S. President Donald Trump at the White House on 17/11. Photo: AFP

The USMCA replaced the North American Free Trade Agreement in 2020, negotiated during Trump's first presidential term. It is scheduled for a joint review by the three nations in 2026. On December 3, Trump stated that the agreement would either be allowed to expire or a new deal would need to be negotiated.

Meanwhile, negotiations for a bilateral trade agreement in key areas between the U.S. and Canada have collapsed. Canadian Prime Minister Mark Carney last month pledged to spend billions of USD to counter U.S. tariffs, including increasing defense spending and diversifying trade.

However, some analysts believe this stimulus is insufficient to significantly improve Canada's economic outlook. Bradley Saunders, North America economist at Capital Economics, commented, "With a rather precarious budget and any new trade agreement with the U.S. still several months away, it's hard to see what could trigger a recovery without loose monetary policy."

For Mexico, its economic growth declined by 0,3% in Q3, due to slowed industrial activity and the impact of erratic U.S. tariff measures. This marks the first quarterly decline since 2021.

Phien An (according to Reuters)