Trump Threatens To Scrap USMCA, Says He'd "Rather Be Independent"

President Donald Trump on Tuesday suggested he may abandon the United States-Mexico-Canada Agreement (USMCA), the trade deal he helped negotiate during his first term in office.

Speaking with Fox News, Trump downplayed the value of updating the pact. "I don't care," he said. "I mean, I don't really want to. I'd rather be independent." He added: "Here's the thing: Mexico and Canada need us. We don't need them. The deal is important for them. It's not important for us."

"I don't care. I mean, I don't really want to. I'd rather be independent." — President Donald Trump

The administration announced it would not renew the agreement for a 16-year term ahead of the July 1 deadline. That decision triggers annual reviews under the pact and could open portions of the deal to renegotiation. Under current rules, USMCA will remain in effect for another decade so long as no member formally exits the arrangement.

Why This Matters

USMCA governs a large share of North American trade. Any move to decline the long-term renewal or to push for renegotiation could create uncertainty for businesses and supply chains across the three countries. The White House has already imposed new tariffs on Canada, a step that signals an escalation in trade tensions since Trump returned to the presidency.

Next Steps

Officials expect more talks to begin early next month as governments and industry stakeholders assess potential impacts. If annual reviews proceed, negotiators could seek targeted changes to provisions ranging from tariffs and rules of origin to dispute resolution mechanisms.

The situation remains fluid: the administration's statements set a confrontational tone, but formal changes will depend on upcoming negotiations and whether any member decides to withdraw from the agreement entirely.