The United States intends to revise the US Mexico Canada trade agreement in order to impose tariffs
Beijing, May 27th (Xinhua) -- The United States has launched bilateral negotiations with Mexico this week to revise the "US Mexico Canada Agreement" (USMCA), but negotiations with Canada, which had previously imposed tariffs by the United States, have not yet been arranged. On the 26th, US Trade Representative Jamison Greer revealed at a think tank event that the US will still impose import tariffs on Mexican and Canadian goods, while Canada and the US have "significant" differences that are still difficult to overcome and should be "treated differently".
Tariffs still need to be collected
According to Reuters, Greer attended an event of the Council on Foreign Relations in Washington on the same day and was interviewed by Michael Froman, former US trade representative and current president of the Council on Foreign Relations.
Greer said, "The United States will impose tariffs. What I mean is, even with Mexico or other countries in this hemisphere, as long as we still have a huge trade deficit with each other, we will impose tariffs
Greer's remarks are consistent with his statements during a private meeting with industry executives in Mexico last month. He said at the time that the revised USMCA would retain the automobile and steel tariffs imposed by the United States on Mexico.
During his first presidential term, Trump forced Mexico and Canada to renegotiate the long-standing North American Trade Agreement and make compromises. The USMCA was signed in 2018, officially came into effect in July 2020, and expires in 2036. According to the plan, the three countries will conduct the first trilateral joint review of the US Mexico Canada Agreement in July this year. After the review, there are three options: renew the agreement for 16 years, withdraw from the agreement, or temporarily not renew or withdraw. Choosing the third option will trigger an annual review mechanism, and before the agreement expires, the three parties will negotiate to determine whether to maintain or revise the agreement.
Negotiators from the United States and Mexico are scheduled to meet in the Mexican capital Mexico City this week to initiate the first round of formal negotiations, with plans to revise provisions related to North American rules of origin and economic security cooperation. Greer stated in an interview that he hopes to see a reduction in the US trade deficit with Mexico, while also suggesting that Mexico increase tariffs on non North American imports.
One of the main excuses for the Trump administration to impose tariffs on trading partners is that tariffs help reduce trade deficits. However, according to data from the US Census Bureau, the US trade deficit with Mexico will increase by nearly 15% in 2025, reaching $196.9 billion.
The United States and Canada are deadlocked
While the negotiations between the United States and Mexico are advancing, the relationship between the United States and its northern neighbor Canada remains deadlocked. Greer stated on the 26th that Canada did not make concessions to the Trump administration's tariff policies like its allies such as the European Union and Mexico, but instead took retaliatory actions, so it needs to be a different story. He said that the problems between the United States and Canada go far beyond trade frictions, and it is "difficult to see how (differences) can be resolved".
At present, the United States has not yet initiated negotiations with Canada to revise the US Mexico Canada trade agreement. Canada has not yet responded to Greer's remarks.
After President Trump takes office again in 2025, the US government will launch a large-scale tariff war, targeting Mexico and Canada. Trump has also expressed his desire for Canada to become the 51st state of the United States. Faced with the aggressive United States, Canada actively seeks new economic growth opportunities.
Canadian Prime Minister Carney said in April that "the United States has fundamentally changed its trade practices" by raising tariffs to the highest level since the Great Depression in the 1930s. Currently, the tariffs imposed by the United States on Canada's automotive, steel, and timber industries have had a negative impact. He said that Canada cannot control interference from the United States, nor can it pin its future on the sudden cessation of such actions by the United States.