Trump Calls CUSMA a ‘Bad Deal’ as Trade War Rhetoric Escalates
A sharp new signal is coming out of Washington and it’s putting North American trade back under the spotlight. The U.S. Commerce Secretary Howard Lutnick has suggested that President Donald Trump believes the Canada–U.S.–Mexico Agreement, or CUSMA, is fundamentally flawed and may need to be “re-imagined” before its next review.
Speaking at a major economic summit in Washington, Lutnick argued that the trade deal, originally designed to stabilize North American commerce, has not worked evenly across industries. He specifically pointed to the auto sector, saying production shifts from the United States into Mexico have damaged American manufacturing jobs and weakened industrial communities in states like Ohio and Michigan.
According to Lutnick, the administration views parts of the agreement as beneficial, especially in areas like energy cooperation with Canada and Mexico. But he stressed that other sections, particularly those tied to manufacturing and supply chains, are being reassessed with a far more critical lens. His comments suggest the Trump administration is preparing for a tougher negotiating stance as the 2026 review window approaches.
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The remarks also come at a sensitive moment in U.S.–Canada relations. Canadian officials have been actively engaged in discussions to preserve stability in the agreement, while also addressing separate tariff pressures affecting steel, aluminum and automobiles. At the same time, Washington has been pushing for changes that would bring more production back into the United States.
Lutnick’s tone also reflected broader frustration in the administration over trade imbalances, with strong criticism directed at how other economies interact with the U.S. market. That rhetoric adds further tension to already delicate negotiations, especially as Canada continues balancing trade relationships with both the United States and China.
The stakes are significant. CUSMA underpins hundreds of billions of dollars in annual trade and any major rewrite could disrupt supply chains across North America. Industries from automotive manufacturing to agriculture could feel immediate consequences if negotiations shift toward protectionist policies or new tariff structures.
For now, officials on all sides are signaling that talks are ongoing, but the language from Washington suggests the next phase of negotiations may be far more confrontational than cooperative.
As this story develops, the direction of North American trade policy could reshape economic ties that have been in place for decades. Stay with us as we continue to track every update, every statement and every move that could redefine this critical agreement.
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