: Flags of the U.S., Canada and Mexico fly next to each other in Detroit, Michigan, U.S. August 29, 2018.

USMCA / NAFTA

President Donald Trump has threatened Canada and Mexico with new tariffs if they don't do more to halt migrants and drugs from entering the United States, the latest chapter in long-running disputes among North America's biggest trading partners. In his first term, Trump renegotiated the North American Free Trade Agreement (NAFTA) with Canada and Mexico, which had taken effect in 1994. Trump, Canadian prime minister Trudeau, and Mexican president Peña Nieto signed the new United States–Mexico–Canada Agreement (USMCA), which took effect in 2020.

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

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