Trump considers leaving Canada out of the North American Free Trade Agreement
Donald Trump, President of the United States. Photo: EFE/ Will Oliver
TL;DR
- The US government is contemplating major changes to the USMCA, potentially excluding Canada.
- These changes could result in bilateral trade agreements between the US and Mexico, and the US and Canada, instead of the current trilateral pact.
- Former President Trump's administration has a history of trade tensions with Canada, including recent threats to block a new border bridge.
- Experts suggest these actions are part of Trump's negotiation strategy.
- A failure in the USMCA review could negatively impact US businesses in agriculture and automotive manufacturing.
- Ernst and Young (EY) experts predict that a USMCA failure would increase tariffs and decrease GDP for Mexico.