American voters actually agree on something. It's rare. According to a fresh survey by Public Opinion Strategies on behalf of the Global Business Alliance, nearly three-quarters of Americans think the Trump trade deal with Canada and Mexico is good for the economy. Specifically, 72% of respondents backed the pact. That includes two-thirds of Republicans and three-quarters of Democrats.
Most people say the United States-Mexico-Canada Agreement (USMCA) helped create American jobs and lowered prices for consumers. It is a striking bit of unity in a deeply divided country.
Yet, Washington is ignoring the public. The Trump administration is preparing to enter messy renegotiation talks, kicking off a multiyear review process that puts the future of regional trade in serious doubt. US Trade Representative Jamieson Greer recently confirmed that the US will not renew the deal as it stands for another 16-year term. Instead, they are forcing everyone back to the negotiating table.
Why Washington Wants to Tear It Up Anyway
Politicians operate on a different wavelength than everyday consumers. While you might appreciate stable prices at the grocery store or auto dealership, the administration is focused heavily on manufacturing numbers.
Trump has already slapped 25% tariffs on Mexican and Canadian vehicles, 50% on metals, and 10% on lumber. He openly states he does not want to extend the USMCA in its current form. His team wants drastic changes.
In virtual meetings with Mexican Economy Minister Marcelo Ebrard and Canadian trade minister Dominic LeBlanc, Greer has pushed tough demands. The biggest flashpoint? The US wants North American-built cars to contain at least 50% specific US content, pushing the required regional total up to 82%.
If the three nations fail to agree on an extension, the trade pact enters an annual review cycle. That means a decade-long countdown toward the deal completely sunsetting begins.
The Battle Between Unions and Boardrooms
The political pressure to remake the Trump trade deal with Canada and Mexico isn't just coming from the White House. Big labor unions are furious with how the agreement played out over the last six years. They argue the deal failed to stop corporations from moving factory jobs down south where labor is cheaper.
United Auto Workers president Shawn Fain did not hold back, stating that there is no way back to the American dream without undoing the damage of NAFTA and its successor. He is calling for a dramatic transformation of the rules. United Steelworkers president Roxanne Brown chimed in too, arguing the deal fell short of stopping a corporate race to the bottom on wages.
Corporate executives see it differently.
The Business Roundtable, which represents America’s largest companies, points out that the USMCA supports more than 13 million jobs. Business leaders argue that tearing up the rules creates a toxic environment for investment. Jonathan Samford, head of the Global Business Alliance, noted that clear, stable rules give international firms the confidence to build factories and hire workers inside the US. Take away that predictability, and you kill America's competitive edge.
The auto sector is caught right in the crosshairs. Auto industry officials are begging for a quick resolution. They note that current tariffs put American-made cars at a massive disadvantage against Japanese and South Korean rivals, who face lower tariffs and can use cheaper parts from China.
How Businesses Can Handle the Trade Limbo
The political theater will take years to play out. If you run a business relying on North American supply chains, you cannot afford to wait around for a final signature.
First, audit your supply chain right now. Calculate exactly what percentage of your components originate in Mexico or Canada. If the administration successfully pushes the domestic content requirement to 50%, you need to know how much your costs will spike if you have to shift suppliers.
Second, look closely at your long-term contracts. Avoid locking yourself into rigid, multiyear shipping or purchasing agreements that assume zero-tariff trade will last forever. Insert flexibility clauses that allow you to renegotiate terms if import duties shift.
The continental trade zone is facing its biggest shakeup since 2020. Voters like the deal, but the politicians holding the pens are determined to rewrite it anyway. Prepare for a bumpy ride.
