PPI - Radically Pragmatic
  • Donate
Skip to content
  • Home
  • About
    • About Us
    • Locations
    • Careers
  • People
  • Projects
  • Our Work
  • Events
  • Donate

Our Work

USMCA is Not Broken, Doesn’t Need Major Changes

  • November 11, 2025
  • Ed Gresser
Download PDF

In 2026 USMCA Review, Congress Should Focus on Crises Caused by Trump Administration

The U.S.-Mexico-Canada Agreement, successor to the North American Free Trade Agreement, has been in force for just over five years. That means a deadline of sorts is coming up. As passed by Congress in 2019, the USMCA includes a clause directing the three partner countries to “review” the agreement after six years — that is, by July 2026 — and decide whether they like it more or less as is, or want to see changes.

In principle, that’s fine. The agreement is a big human creation, with some notable innovations. As such, it has lots of features that look good to some groups but bad to others. With the “review” ahead, industry associations, pressure groups, labor unions, and agricultural commodity groups are all dutifully writing up lists of ways to improve it. But fundamentally, the agreement is working reasonably well — facilitating trade in agriculture, energy, and manufacturing, helping digital channels stay open, encouraging joint work on wildlife trafficking and ocean health, and experimenting with a novel approach to labor issues. At the same time, though, the Trump administration’s profligate tariffs and threats against Canada and Mexico are causing a series of genuine crises: usurpation of Congress’s Constitutional authority; erosion of relationships at the core of U.S. national security; and a deteriorating economic environment as tariffs raise costs for families and diminish the competitiveness of U.S. farming and manufacturing.

The “deadline,” meanwhile, is a very soft one. In fact, it requires no action at all. And in the circumstances of 2025 and 2026, the best choice is “let well enough alone.” Congress should make it clear that the USMCA does not need major changes at this point, and that policy should instead focus on ending these self-created crises. If the administration nonetheless wants to proceed, Congress should require three steps first:

  • Approve legislation such as Representative Linda Sanchez’s HR 2888, which would terminate the administration’s “emergency” and “national security” decrees under laws like “IEEPA,” “Section 232,” and “Section 301” and require votes on any future Presidential imposition of tariffs (or other import limits) with some carefully circumscribed exceptions.
  • Stabilize North American security by restoring trust, mutual respect, and common interest as the foundation of U.S. policy for America’s neighbors.
  • Restore Constitutionally appropriate policymaking, with Congress setting negotiating objectives for trade policy agencies and voting to approve, or not, any agreements making changes in U.S. tariff rates or trade laws.

With these done, it would be appropriate, and might be useful, to look closely at the USMCA and see whether a broad consensus exists for changes that would improve it. But not before.

Read the full policy memo.

Related Work

Trade Fact  |  December 16, 2025

Tariff bill on toys and Christmas ornaments up 300-fold this year

  • Ed Gresser
Trade Fact  |  December 10, 2025

Worldwide HIV/AIDS mortality down 80% since PEPFAR launch

  • Ed Gresser
Trade Fact  |  December 3, 2025

Foreign exchange trading in rubles is down by 96%

  • Ed Gresser
Publication  |  December 3, 2025

Testimony: USMCA is Not Broken, Doesn’t Need Major Changes

  • Ed Gresser
Trade Fact  |  November 19, 2025

Trump administration tariff increases through July 2025: $888 million on toys and dolls, $81 million on bananas, $71 million on tampons, $45 million on bandages

  • Ed Gresser
In the News  |  November 15, 2025

Gresser in The Washington Post: Trump goes on defense over tariffs as prices on everyday items keep rising

  • Ed Gresser
  • Never miss an update:

  • Subscribe to our newsletter
PPI Logo
  • Twitter
  • LinkedIn
  • Facebook
  • Donate
  • Careers
  • © 2026 Progressive Policy Institute. All Rights Reserved.
  • |
  • Privacy Policy
  • |
  • Privacy Settings