THE PARTNERSHIP TO ADVANCE NORTH AMERICAN PROSPERITY
Fighting to Advance the U.S. Economy, as Well as Those of Mexico and Canada, by Preventing a Devastating Trade War
​In 2020, President Trump signed the landmark U.S.-Mexico-Canada Agreement (USMCA), calling it "the fairest, most balanced, and beneficial trade agreement we have ever signed into law."​ But those huge benefits are now in jeopardy.​
In his second term, President-elect Donald Trump threatened to charge a 25% tariff on all products coming from Mexico to the U.S. Like all tariffs, the duties will be paid by importers -- U.S. businesses and consumers.
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These tariffs, coming on the brink of the 2026 review of the USMCA, would appear to violate the very heart of the USMCA and pose an existential threat to many businesses and farms, not just in Mexico and Canada but in the U.S. Already, Mexico’s new president, Claudia Sheinbaum, indicated that tariffs imposed by the U.S. would lead to retaliation by Mexico.
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The risk is great. Businesses, consumers, workers and families throughout North America will be caught in the crossfire of an inevitable trade war.​
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The Importance of USMCA
The USMCA entered into force on July 1, 2020. The landmark agreement, which substituted the North America Free Trade Agreement (NAFTA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses. USMCA creates more balanced, reciprocal trade supporting high-paying jobs for Americans and growth of the North American economy.
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USMCA has been a boon for job growth, with intra-regional trade in goods and services supporting nearly 17 million jobs in 2022—a 32% increase compared to 2020 (Brookings USMCA Tracker). Similarly, since the implementation of USMCA, investment has surged, with the US and Canada emerging as the top global destinations for foreign direct investment (FDI) in 2023, attracting $311 and $50 billion, respectively.
To view the main USMCA webpage, click here.​​​
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Resources​
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CNN (Mar 7) - Trump threatens new tariffs on Canada, including 250% tax on dairy
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ABC News (Mar 6) - A timeline of Trump's tariffs on Canada, Mexico and China
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AP (Mar 6) - Trump’s trade war draws swift retaliation with new tariffs from Mexico, Canada and China
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Reuters (Feb 28) - Trump vows March 4 tariffs for Mexico, Canada, extra 10% for China over fentanyl
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AP (Feb 17) - Trump’s tariffs expose Ukraine’s steel industry to another war
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BBC (Feb 16) - Trump steel tariffs negative for UK and US, says Reynolds
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CSIS (Feb 14) - U.S. Steel and Aluminum Tariffs Won’t Solve the Chinese Dumping Problem
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White House (Feb 11) - FACT SHEET: PRESIDENT DONALD J. TRUMP RESTORES SECTION 232 TARIFFS
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AP (Feb 10) - Trump says he will announce 25% steel and aluminum tariffs Monday, and more import duties are coming
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The New York Times (Feb 4) - Trudeau and Sheinbaum Took Different Routes to a Tariff Deal
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AP (Feb 2) - Trump says Americans could feel ‘some pain’ from tariffs as he threatens more import taxes
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Financial Post (Jan 22) - White House maps trade overhaul as Trump threatens tariffs
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Bloomberg (Jan 20) - Trump Plans to Impose 25% Tariffs on Mexico, Canada by Feb. 1
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The White House (Jan 20) - America First Trade Policy
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Barron's (Jan 3) - Trump’s Proposed Tariffs Could Cost U.S. Companies. Here Are the Most Vulnerable Industries
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