Trump Uses Trade Threats to Spur Talks
The Wall Street Journal|January 22, 2025
President Trump is using the threat of stiff tariffs on goods from Canada and Mexico as soon as next week to pressure the two nations to start renegotiating a continental trade deal, according to people familiar with the matter.
Brian Schwartz, Gavin Bade and Vipal Monga
Trump Uses Trade Threats to Spur Talks

The U.S.-Mexico-Canada (USMCA) trade agreement, crafted during Trump's first term in office as a replacement for the North American Free Trade Agreement, is up for statutory review in 2026- but Trump hopes to renegotiate it sooner, the people said.

Trump is particularly focused on using the threat of tariffs to change automotive rules, forcing car plants to move from Canada and Mexico back to the U.S., according to people familiar with his thinking. That has sent major automakers rushing to find ways to satisfy Trump without "blowing up the North American auto supply chain" that extends throughout the three nations, according to one auto-industry executive.

Trump, according to people briefed on the matter, plans to turn to Howard Lutnick, his pick for commerce secretary, and Jamieson Greer, his pick for U.S. trade representative, to handle the renegotiation.

Trump told reporters on Tuesday that he is threatening to impose tariffs on Mexico and Canada to compel the countries to limit the flow of fentanyl and migrants into the U.S. He also said he is considering 10% tariffs on imports from China, and is weighing tariffs on the European Union. The USMCA governs about $2 trillion of trade. It was approved by Congress with the broadest support of any trade deal in U.S. history. More than 200 Democrats in the House and Senate joined Republicans in backing the agreement because of the labor and environmental standards that Trump's team added. Since its signing, Mexico and Canada have supplanted China as the leading U.S. trading partners, according to Census Bureau data.

This story is from the January 22, 2025 edition of The Wall Street Journal.

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This story is from the January 22, 2025 edition of The Wall Street Journal.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.