Hamilton, ON, July 2, 2026 – On July 1, US president Donald Trump announced that he would not join Canada and Mexico in extending CUSMA, a decision that could have major impacts on trade flows, manufacturing, and business investment across North America.
The announcement came on the deadline for review and adjustments, a provision of the agreement that allows for changes.
In the absence of a renewal, the existing trade deal continues in force until its expiry in 2036 or until a new deal is reached. As part of the review process, the US decision not to renew CUSMA will trigger annual negotiations.
Areas of disagreement between the United States and Canada include steel, aluminum, auto, and lumber tariffs on Canadian products, as well as Canadian restrictions on US dairy products, alcohol boycotts, and regulation of digital companies.
In addition to trade benefits, CUSMA also includes non-trade benefits that include the chapters on investor protection and intellectual property, which may be at risk.
McMaster experts are available to discuss the CUSMA review and economic impact:
Colin Mang (assistant professor, Economics) can be reached at colinmang@mcmaster.ca.
Pau Pujolas (associate professor, Economics) can be reached at pujolasp@mcmaster.ca.