The US said it intended to maintain tariffs on some imports from Canada and Mexico, dimming hopes that they could uphold their free trade accord.
All three nations must decide by July 1 whether to extend the US-Mexico-Canada Agreement, signed during President Donald Trump’s first term, for another 16 years.
But the Trump administration had “significant” trade issues with Canada, US Trade Representative Jamieson Greer said, adding that the “giant” US trade deficit remained a cause of concern.
Meanwhile, Mexico — which has in recent years surpassed China to become Washington’s biggest trading partner — this week reported a record monthly trade surplus, beating analysts’ expectations by a factor of 10.
