USMCA review: US farm, manufacturing groups back Trump's renegotiation push
Synopsis
Key Takeaways
President Donald Trump's decision to withhold renewal of the US-Mexico-Canada Agreement (USMCA) until existing shortcomings are addressed has drawn broad support from American agricultural producers, manufacturers, industry associations, and lawmakers across both major political parties, according to statements released on 3 July.
The White House confirmed that the President had declined to 'rubber stamp' the agreement, insisting the move served the interests of US manufacturers, farmers, ranchers, workers, service suppliers, and businesses of all sizes. Officials stressed that the USMCA remains in force while Washington works to resolve outstanding disputes with Canada and Mexico and narrow the US trade deficit with its North American neighbours.
Agricultural Sector Backing
Shawna Morris, Executive Vice President of the National Milk Producers Federation and the US Dairy Export Council, welcomed the launch of the first Joint Review of the agreement. 'As the United States, Mexico, and Canada launch the first Joint Review of the US-Mexico-Canada Agreement (USMCA), we commend the ongoing efforts to resolve outstanding issues and work toward a renewal of this vital agreement,' she said. Morris added that 'a stronger, durable, renewed USMCA is key to the long-term prosperity of dairy producers and exporters across North America.'
Bill Bullard, Chief Executive Officer of the Ranchers Cattlemen Action Legal Fund, argued that negotiating separate trade arrangements with Canada and Mexico offered 'an opportunity to correct the serious deficiencies in the NAFTA and USMCA.' He said his organisation was 'encouraged that the administration is moving in that direction.'
Manufacturing and Consumer Goods Industry Response
Melissa Hockstad, President and CEO of the Consumer Brands Association, said the review gave the administration 'a unique opportunity to elevate an ambitious approach with Mexico and Canada at the table.' She expressed confidence that the President and the US Trade Representative would pursue 'an America First position that strengthens North American competitiveness and supports US manufacturing.'
Bipartisan Congressional Support
Several Republican and Democratic lawmakers endorsed the review. Senator Pete Ricketts acknowledged the importance of trade ties with Canada and Mexico for Nebraska but maintained that 'the current USMCA has issues that must be resolved,' backing the administration's push to negotiate 'the best deal possible for the American people.'
House Ways and Means Committee Chairman Jason Smith said simply extending the existing agreement 'is not in the best interest of the United States,' accusing both Canada and Mexico of failing to honour several commitments — including Canada's treatment of American dairy producers and Mexico's policies affecting US investors.
Representative Adrian Smith called the President's decision 'not a termination — it is an opportunity to strengthen enforcement,' while Representative Claudia Tenney said renewal should not proceed without addressing concerns affecting US wineries, dairy farmers, and fruit and vegetable producers. Representative Dan Newhouse similarly framed the move as an enforcement opportunity rather than a withdrawal.
Democratic voices also joined the call for reform. Representative Rosa DeLauro said she had led 105 Democratic members of Congress in urging renegotiation, arguing the agreement 'is failing American workers' as trade deficits with Canada and Mexico have grown and multinational corporations have continued shifting leverage overseas. Representative Chris Deluzio called for 'major pro-worker reforms,' while Representative Linda Sanchez described the review as 'a good sign that all three countries are ready to review and hopefully strengthen the agreement.'
What Happens Next
The USMCA remains operative during the review period, meaning trade flows between the three countries are not immediately disrupted. However, the administration's refusal to extend the pact in its current form sets the stage for what could be a complex renegotiation involving dairy access, investor protections, labour enforcement, and manufacturing supply chains. This is the first formal Joint Review since the agreement replaced NAFTA in 2020, and its outcome will shape North American trade architecture for years ahead.