On Wednesday, the Trump administration announced it will not support renewal of the United States-Mexico-Canada Agreement, triggering a new round of trade negotiations and uncertainty for firms doing business across North America.

This latest move aligns with the administration’s broader efforts to apply tariffs as policy levers. The president has balked at allowing USMCA-compliant products from Canada and Mexico to bypass his global tariffs, and this review, scheduled in the agreement itself, provided an opportunity to retool the deal.

NBC News reports that instead of renewing the agreement, the U.S. will begin a decade of negotiations to amend USMCA, which is now subject to annual reviews, with the potential for separate, bilateral trade agreements with Mexico and with Canada.

  • Ultimately, if the U.S., Canada and Mexico don’t agree to extend the USMCA, it will terminate in 2036.


“Uncertainty around USMCA is itself a business challenge. Branded merch companies need confidence in North American trade rules so they can plan sourcing, manage costs and keep products moving for customers,” says Alok Bhat, PPAI’s research and public affairs lead.

Renewal of the USMCA, which provides tariff-free treatment for goods that qualify based on treaty-specific rules of origin, has been an advocacy priority for PPAI. Members asked lawmakers to encourage stability as a top priority during the scheduled joint review of USMCA and to pursue renewal of the agreement with minimal changes during our Legislative Education & Action Day in Washington in April, and the Association encouraged members to submit comments during the government’s review process last fall.

ICYMI: Promo Leaders Urge Stability As USMCA Review Process Begins

At that time, Alan Meinstein, CEO of Montreal-based Spector & Co., PPAI 100’s No. 24 supplier, told PPAI Media that the USMCA is a key piece in keeping trade strong across North America: “It has helped create stability and efficiency for businesses like ours, and we want to make sure it keeps doing that.”

  • Suppliers and distributors alike have benefited from the stability USMCA provides, as it helps ensure consistent pricing and product availability for their clients.


For now, negotiations are proceeding. The U.S. has already conducted two rounds of formal talks with Mexico, with another scheduled later this month. No formal negotiations with Canada are underway as yet, but U.S. and Canadian officials remain in conversation.

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PPAI will continue to monitor the issue and provide industry-relevant updates. Look to PPAI Media for timely updates throughout the year, as well as opportunities to raise your voice in support of industry priorities. Subscribe to Newslink to stay up to date with industry news and advocacy opportunities:

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Please contact Rachel Zoch, CAS, PPAI’s public affairs manager, at rachelz@ppai.org if you have any questions about regulatory issues or government affairs.