The United States-Mexico-Canada Agreement (USMCA) is an essential tool to maintain critical trade relationships with our largest trade partners and support the complex supply chains that sustain Michigan’s signature automotive and mobility industry. Keeping this trade agreement strong and effective is necessary to maintain a healthy trade bloc and help businesses make long-term, capital-intensive investments that bolster Michigan’s economy.
The Latest on USMCA: Where Things Stand After the July 1 Extension Deadline
July 15, 2026
Understanding Terms of the USMCA
The USMCA entered into force on July 1, 2020, with an expiration date of July 2036 and a review process that operates on a six-year cycle. The current agreement requires a joint review on the sixth anniversary of its implementation. That review determines if the agreement will be extended for another 16 years, or require additional negotiation and updates.
Negotiations Begin
The July 1 deadline to extend the agreement in its current state (based on the six-year cycle) has come and gone, and the U.S. opted not to renew it. While the USMCA remains in effect, this decision initiated a review process among the three partner countries.
What’s Next
The U.S. declining to renew the agreement means the three countries’ officials will need to conduct annual reviews for the next 10 years. In any of these annual reviews, the countries may conclude that they identified all necessary changes and choose to extend the agreement for another 16 years, stopping the annual review format. If that does not happen by July 1, 2036, the agreement would terminate.
The countries also have the option to terminate the agreement under Article 34.6, allowing them to exit at any time with six months’ written notice.
The U.S. Trade Representative, Jamieson Greer, shared in a statement on July 1 that the U.S. will meet with Mexico the week of July 20 for another round of negotiations around the joint review.
What’s at Stake
MichAuto and the Detroit Regional Chamber have spent the past several months educating members and the business community about the process and the importance of this agreement. Michigan continues to remain uniquely vulnerable to fluctuating trade policy, and this is no exception. A swift, productive negotiation process to strengthen the USMCA will ensure Michigan’s competitiveness and economic strength and support national interests as the U.S. competes with China and the EU to lead the global innovation economy.