On Sept. 16, the Office of the U.S. Trade Representative (USTR) initiated a public consultation process ahead of next year’s Joint Review of the United States-Mexico-Canada Agreement (USMCA). Public comments must be submitted by Nov. 3, 2025. USTR is then scheduled to hold a public hearing on the effectiveness of USMCA on Nov. 17, 2025.

Despite imposing tariffs in response to fentanyl trafficking and border security on both Canada (35%) and Mexico (25%) under the International Emergency Economic Powers Act (IEEPA), President Donald Trump has not applied these tariffs to goods that meet the rules of origin under USMCA. In addition, even as it conducts bilateral trade negotiations with both Canada and Mexico, the administration has not subjected either country to the IEEPA-based “reciprocal” tariffs of 10% to 50% that it has imposed on other U.S. trading partners. The administration has applied sector-specific tariffs imposed under Sec. 232 of the Trade Expansion Act of 1962 selectively to both Canada and Mexico.

The comment period and public hearing on USMCA provide an important opportunity for businesses, trade associations, and other stakeholders to weigh in with the administration on the positive and negative aspects of one of the most important trade agreements the United States is a party to. USMCA negotiations will involve many important issues of interest to stakeholders, including the tariff harmonization across the three countries and strengthened rule of origin requirements with the goal of driving a common approach to subsidized imports from non-market economies such as China.

State-of-Play

USMCA was one of the most significant accomplishments of the first Trump administration. After repeatedly criticizing the North American Free Trade Agreement (NAFTA) as outdated and harmful to American workers, President Trump initiated negotiations with Mexico and Canada to modernize and replace the agreement. Since returning to office, the president has expressed concern that Canada and Mexico have taken unfair advantage of the USMCA and U.S. free market access and suggested that the agreement needed to be renegotiated.

On Feb. 1, President Trump issued a series of executive orders (EOs) to impose a 25% tariff on all Canadian and Mexican goods, with the exception of Canadian energy resources, which would be subject to a 10% tariff. The president invoked the International Emergency Economic Powers Act (IEEPA), citing the failure to stop illicit immigration as well as fentanyl and other drug trafficking into the United States. These tariffs took effect on March 4; however, the president signed an EO on March 6 temporarily exempting goods that satisfy USMCA rules of origin or that claim and qualify for USMCA preference. This exemption remains in effect.

On July 31, President Trump increased the duty on Canadian goods to 35%, while maintaining the lower duty for energy resources, citing “Canada’s lack of cooperation in stemming the flood of fentanyl and other illicit drugs across our northern border” and “efforts to retaliate against the United States.”

Beyond the outlined actions, Canada and Mexico have been largely exempt from the president’s broader tariff regime. The two countries are not subject to the IEEPA-based “reciprocal” tariffs. Approximately 85% of goods imported from Canada and Mexico continue to enter the United States duty-free, preserving the core benefits of the USMCA framework.

USMCA Joint Review

USMCA includes a Joint Review provision, novel in U.S. trade agreements, which requires the United States, Canada, and Mexico to review the operation of the agreement on the sixth anniversary of the agreement’s entry into force date, which is July 1, 2026.

In addition to reviewing the operation of the agreement, the three countries must confirm if they wish to extend the agreement beyond its 16-year sunset. They could also agree to modify the agreement. If all three countries agree to an extension, the agreement will be renewed for another 16-year term. If one or more countries does not agree to an extension, then the agreement would be set to terminate in July 2036. However, the countries would then meet on an annual basis and could agree to extend the agreement at any point prior to its termination.

Exactly how the Joint Review will play out remains unclear due to a range of factors, including the review’s novel nature, the ongoing bilateral negotiations that the Trump administration is engaged in with both Canada and Mexico, the president’s willingness to unilaterally impose tariffs outside of the agreement, and his willingness to inject non-trade issues—such as border security—into the talks.

USTR’s announcement seeks public comment on all aspects regarding the operation or implementation of USMCA, as well as recommendations for specific actions USTR should propose ahead of the Joint Review.

The agency specifically seeks comments on the following key areas:

• The operation or implementation of the agreement;
• Any concerns related to compliance with USMCA provisions;
• Recommendations for how the agreement could better “promote balanced trade, new market access, and alignment on economic security with Mexico and Canada.”
• Barriers to investment in the United States; and
• Approaches to enhance the parties’ cooperation on issues related to non-market policies and practices of other countries.

The opening of the comment period is the first step in a long-term process that USTR must undertake in preparation for the formal review next year. During this phase, the agency will review all submitted public comments alongside statements presented during the public hearing. This feedback will inform USTR’s assessment of how USMCA is functioning in practice and guide its recommendations on any issues that merit attention during the formal review.

Following this consultation, USTR is required to compile a detailed report for Congress by Jan. 2, 2026. This report will include an evaluation of the agreement’s operation, the U.S. position on whether to extend the USMCA beyond its initial 16-year term, and specific proposals for actions to be considered at the Joint Review meeting, which should occur on or around July 1, 2026.

As part of the Joint Review process, Mexico announced its own public consultation period, which began on Sept. 17, and Canada completed its public comment period in October 2024.