On July 1, 2026, the United States declined to approve a 16-year extension of the USMCA during the first scheduled joint review, shifting the agreement to annual reviews that will continue until unanimous consent for extension or the 2036 termination date. President Trump has publicly stated he is not seeking renewal in its current form and has prioritized bilateral negotiations with Mexico on issues including rules of origin, automotive content, trade deficits, and economic security, while imposing additional tariffs that strained relations with Canada. These developments, along with ongoing USTR consultations for the 2027 review, have produced trader consensus that a full extension will not occur in 2026.