US President Donald Trump said he was “not looking to renew” his country’s free trade deal with Canada and Mexico, a decision that could have huge economic consequences across North America.
Trump has repeatedly criticized those countries over a range of issues, while adding on Wednesday that the US didn’t “need anything that they have.” However, trilateral trade has soared in recent years as Sino-US trade tensions have risen, with Mexico becoming Washington’s biggest trading partner.
Though analysts suggest that indefinitely postponing the renewal of the USMCA — agreed during Trump’s first term — gives Washington leverage over its neighbors, it also disincentivizes much-needed regional investment. “Each capital needs the other two more than current rhetoric suggests,” CSIS wrote recently.
