President Trump on Wednesday said he would 'rather not have' the U.S.-Mexico-Canada Agreement, suggesting he may terminate the trade pact that binds North America. The president told reporters in Paris that he would 'rather leave it unsigned' and that 'we do better as a country if we don't have an agreement.' He added, however, that he 'may sign it.'
The comments come as the USMCA faces a mandatory joint review requiring the three nations to decide by July 1 whether to extend the agreement for another 16 years. The risk of the deal collapsing now appears greater than before, according to Axios.
An implosion of the deal could be disastrous for key industries that depend on the free flow of parts across both borders. Companies have spent years pouring money into North American-based supply chains to produce goods, including automobiles, for a more affordable price.
Many observers expect the countries will blow past the July 1 deadline without a decision, according to the report. A termination would disrupt trillions of dollars in annual trade and upend manufacturing networks built under the original NAFTA and its successor.
Skeptics note that Trump has a history of threatening trade deal withdrawals as negotiation tactics. The president's shifting statements—from termination to 'may sign it'—suggest the outcome remains uncertain.