Trump Pushes for USMCA Revisions in 2026 to Boost American Jobs

President Donald Trump is set to push for revisions to the United States–Mexico–Canada Agreement (USMCA) in mid-2026, aiming to secure more jobs for American workers. This announcement was made by Commerce Secretary Howard Lutnick on a Sunday news program. Lutnick described the review of the trade pact as a natural progression, given that the USMCA can be examined every six years and will lapse after 16 years unless all three countries agree to extend it. The next review is scheduled for July 2026.

Lutnick emphasized that Trump's primary goal is to shift the production of vehicle parts back to plants in the U.S., specifically in states like Michigan and Ohio. "He wants to protect American jobs," Lutnick stated. "He doesn’t want cars built in Canada or Mexico when they can be built here at home." This stance reflects Trump's broader trade approach, which Lutnick praised as handling tariffs and talks "the right way."

The USMCA, negotiated by Trump to replace the North American Free Trade Agreement (NAFTA), includes a requirement that 75% of a vehicle’s components be produced within the U.S., Mexico, or Canada to avoid tariffs. The agreement also opened new opportunities for U.S. farmers, boosting exports of eggs, poultry, and wheat. Lutnick's comments highlight the administration's focus on revisiting trade agreements to better align with current economic and political priorities.

Lutnick also forecasted that the next two weeks would be historic for U.S. trade. The administration has warned 25 trading partners that if they do not reach deals by August 1, they will face higher tariffs on American imports. Despite months of negotiations, only a few formal agreements have emerged so far. Lutnick countered criticism by stating that the tariff notices have pushed reluctant countries to the bargaining table.

Smaller nations will likely face a 10 percent baseline fee on their imports, while larger partners could see steeper rates. One key negotiation involves the EU, which last year exchanged $975.9 billion in goods, more than with any single nation. In April, Trump briefly imposed 20 percent duties on EU exports. He now warns he will raise those to 30 percent for anything arriving after August 1 if no deal is reached. European leaders expect to strike an agreement but have prepared their own retaliatory measures set to begin on the same date.

North America’s two largest U.S. partners, Mexico and Canada, were also told to brace for higher levies, 35 percent for Canadian goods and 30 percent for Mexican goods, up from the 25 percent rate imposed early in Trump’s term. Trump has linked those tariffs to efforts to curb illegal border crossings and fentanyl trafficking. Lutnick noted that while Canada has tightened its controls, little fentanyl crosses from the north. He said the president’s message is clear: “Stop this fentanyl and close the border, or tariffs will remain.”

However, products under the USMCA are exempt from these new charges, sparing most items imported through the U.S. and Mexico-Canada borders from fresh duties. This exemption underscores the strategic importance of the USMCA in maintaining trade relations and ensuring economic stability among the three countries.