The US, Canada and Mexico begin bumpy negotiations to renew North American trade pact

The Trump administration declined to renew the USMCA trade pact negotiated with Canada and Mexico during Donald Trump's first term. This decision initiates an expiration clock and triggers annual reviews, introducing uncertainty into North American trade. Such instability potentially impacts investment and inflation dynamics across the region. The agreement previously facilitated critical economic flows, including Canadian auto parts feeding American Midwest factories and tourism from cities like Chattanooga to resorts in Cancun, now facing a bumpy transition.