U.S. President Donald Trump is preparing to reopen the North American trade agreement (USMCA), according to Commerce Secretary Howard Lutnick. The revision could take place by mid-2026—right on schedule for the next official review phase. Trump's goals are clear: bring production back home, protect American jobs, and put pressure on trade partners who, in his view, are benefiting too much.

"The President absolutely intends to renegotiate the USMCA," Lutnick stated on Face the Nation (CBS). He added that Trump wants key components—especially in the auto industry—to be manufactured in states like Michigan and Ohio instead of foreign factories.

🔹 “Trump is looking ahead and sees an opportunity to rewrite the rules in favor of Americans,” Lutnick said.

🔹 USMCA replaced the original NAFTA and requires 75% of vehicle parts to come from the U.S., Mexico, or Canada—or face tariffs.

🔹 According to Lutnick, the President is set to make the next two weeks a historic moment for U.S. trade.

Ultimatums and Tariffs: The Two Buzzwords of the Coming Weeks

The Trump administration has warned that unless agreements are reached by August 1, a wave of new tariffs will be triggered. And the message isn’t just for the EU, but also for longtime USMCA partners Mexico and Canada.

Lutnick confirmed that smaller nations could face 10% base tariffs, while larger economies could be hit with up to 30%. As for Europe? They've been warned—Trump briefly imposed 20% tariffs in April and now threatens a hike to 30% on all imports unless a new agreement is reached.

🔹 “We believe we can strike a deal,” Lutnick said following a call with top EU negotiators.

🔹 Mexico and Canada have been pre-alerted to possible tariff increases to 30% and 35%, respectively.

🔹 Trump’s strategy ties tariffs to tougher border security and fentanyl enforcement.

Fentanyl, Borders, and Trade Pressure

Trump is linking trade tools not only to domestic jobs but also to national security. According to Lutnick, the President’s message to partners is straightforward: Stop fentanyl trafficking or face tariffs.

Although goods that fall under USMCA remain exempt from these new duties, Lutnick acknowledged that pressure on Mexico and Canada will likely grow. The trade agreement is being used as a lever—to push a broader political agenda.

Market Shakeup Ahead?

The coming weeks could bring political tension—and market movement. Should Trump initiate a new wave of tariffs or begin rewriting USMCA, it could impact currencies, equities, and investor sentiment throughout the region.

And how do Americans feel? A CBS News poll found that 61% believe the administration is focusing too much on tariffs. But Trump insists the pressure is working—and that America has a lot to gain.


#TRUMP , #TradeWars , #globaleconomy , #whitehouse , #Tariffs

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