Trump Privately Contemplates U.S. Withdrawal from CUSMA Trade Pact
Former President Donald Trump is privately considering withdrawing the United States from the Canada-United States-Mexico Agreement (CUSMA), according to sources familiar with internal discussions. This development injects significant uncertainty into pivotal renegotiations involving the three North American nations ahead of a mandatory review deadline this summer.
Internal Discussions Reveal Exit Considerations
Trump has reportedly asked aides why he should not withdraw from the trade pact that he originally signed during his first term in office. While he has not explicitly signaled an intention to exit the agreement, these private musings have created concern among trade officials and market participants. Sources speaking on condition of anonymity described these internal discussions as ongoing but not yet resulting in definitive action.
A White House official, when questioned about these deliberations, characterized Trump as the ultimate decision-maker who consistently seeks better deals for American interests. The official dismissed speculation about potential withdrawal as baseless before any formal announcement from the president.
Trade Representative Outlines Negotiation Strategy
U.S. Trade Representative Jamieson Greer's office stated that simply rubber-stamping the 2019 agreement terms would not serve national interests. The administration intends to keep all options open while negotiating to address identified issues. Greer emphasized that negotiations would proceed bilaterally and separately with Mexico and Canada, noting that trade relations with Canada present more challenges than those with Mexico.
"Generally speaking, these negotiations are going to proceed bilaterally and separately," Greer stated during a Fox Business interview. "The Mexicans are being quite pragmatic right now. We've had a lot of discussions with them. With the Canadians, it's more challenging."
Market Reactions and International Responses
The Canadian dollar and Mexican peso both weakened following reports of Trump's exit considerations, erasing earlier session gains. The U.S. dollar initially pared losses before strengthening more forcefully after a stronger-than-expected employment report.
Mexican President Claudia Sheinbaum downplayed the likelihood of U.S. withdrawal during her daily press conference, stating, "We don't believe it, and it has never been said in the calls, because it is very important to them."
Canadian Prime Minister Mark Carney reported having a "positive" conversation with Trump that included discussion of the CUSMA review, though he did not elaborate on specific details. The office of Canada's minister for U.S. trade, Dominic LeBlanc, declined to comment on the report.
Background on CUSMA Review Process
The Canada-U.S.-Mexico Agreement faces a mandatory review before a possible extension on July 1. What was once expected to be a routine process has transformed into contentious negotiations as Trump has demanded additional trade concessions from both Ottawa and Mexico City. The former president has also pressured both nations to address unrelated issues including migration, drug trafficking, and defense cooperation.
Trump negotiated the current trade system during his first administration but has reportedly soured on the North American trading relationship. The potential withdrawal consideration comes as the three nations prepare for what could become difficult negotiations with significant economic implications for all parties involved.
