Alternate USMCA Paths Gaining Traction in Trump's Agenda
President Donald Trump signals openness to replacing USMCA with separate bilateral deals, raising new questions for U.S. agriculture and trade policy.
Donald Trump has reopened the debate over the future of the U.S.-Mexico-Canada Agreement (USMCA), suggesting the United States could either renegotiate the current pact or pursue entirely separate trade deals with its North American partners. His comments came during a meeting at the White House with Canadian Prime Minister Mark Carney, where Trump criticized existing trade terms-particularly in agriculture-and floated the idea of restructuring the regionalwork that governs over $1.5 trillion in annual commerce.
"Canada was charging us very high tariffs on our agricultural things," Trump stated, renewing familiar grievances about Canadian quotas and tariffs on U.S. dairy exports. The agreement, which replaced NAFTA in 2020, is scheduled for a formal review in 2026, but the White House is signaling that preliminary discussions could lead to more sweeping changes well before then.
Speaking after the meeting, Canadian Minister Dominic LeBlanc confirmed that both sides agreed to continue negotiations, focusing on contentious areas such as steel, aluminum, and energy tariffs. Trump, meanwhile, left the door open to shifting away from a trilateral model entirely, saying, "We can renegotiate it, and that would be good, or we could just do different deals. We might make deals that are better for the individual countries."
Trump's remarks come as U.S. Trade Representative Jamieson Greer indicated that "one-on-one" conversations may become central to the 2026 USMCA review. Speaking in New York last week, Greer underscored the different trade dynamics between the U.S. and each of its neighbors, hinting that a tailored, bilateral approach might better serve American interests.
For U.S. agriculture, the implications are significant. Any move to renegotiate USMCA or replace it with separate deals could impact trade flows, input costs, and export certainty for producers. American farmers rely heavily on integrated supply chains across North America, particularly for livestock, grains, and dairy. Disruptions to those networks could affect market access, regulatory alignment, and pricing.
Tariff disputes have already taken a toll on input costs. The National Pork Producers Council and groups like Farmers for Free Trade argue that steel and aluminum tariffs have increased the cost of equipment and infrastructure, including grain bins, fencing, and livestock facilities. They advocate for a strategic reduction in tariffs to relieve pressure on producers.
While trade dominates headlines, the Trump administration is also reallocating tariff revenues to fund domestic programs. Amid the ongoing government shutdown, the White House announced that it would use Section 232 tariff revenue to temporarily sustain the Women, Infants and Children (WIC) nutrition assistance program. Press Secretary Karoline Leavitt described it as a "creative solution" in the face of congressional inaction. Georgia Machell, president and CEO of the National WIC Association, welcomed the funding but emphasized the need for loterm stability.
The shutdown also casts uncertainty over federal workers, including 42,000 USDA employees who are currently furloughed. According to the Office of Management and Budget, furloughed workers are not guaranteed back pay unless Congress includes such provisions in future appropriations. This development has raised concerns within the agricultural community, where USDA staffing is critical to food safety inspections, loan processing, and disaster assistance.
Meanwhile, the agricultural policy landscape continues to evolve. The Senate confirmed two USDA appointments this week: Devon Westhill as Assistant Secretary for Civil Rights and Michael Boren as Undersecretary for Natural Resources, who will oversee the U.S. Forest Service. At the same time, advocacy efforts are intensifying around state-level animal welfare laws, with the formation of the American Meat Producers Association (AMPA). This new coalition of farmers, food companies, and retailers is calling for fair representation in regulatory discussions and defending state-imposed standards like California's Proposition 12.
As North America approaches the USMCA review in 2026, trade policy watchers expect heightened activity across sectors. Whether the United States chooses to amend the agreement, replace it, or shift toward bilateral deals remains to be seen. For now, the administration is keeping its options open-and agriculture will remain central to the debate.