USMCA / NAFTA

Trade between the United States, Canada, and Mexico has been thrown into uncertainty by the Trump administration's tariffs on Mexico and Canada, despite the United States-Mexico-Canada Agreement (USMCA) that was negotiated in President Donald Trump's first term and took effect in 2020. A review of the USMCA, scheduled for 2026, has gotten under way, with the goal to address many old and new economic and security issues.

In his first term, Trump renegotiated the North American Free Trade Agreement (NAFTA) with Canada and Mexico, which had taken effect in 1994. Now President Trump is dealing with trade and other issues with President Claudia Sheinbaum of Mexico and Prime Minister Mark Carney of Canada, both of whom are determined to protect their countries' interests.

PIIE has conducted extensive research on the costs, benefits, and opportunities of trade among the United States, Canada, and Mexico.