Promo Insiders Deep Dive: Inside Trade Talks Between the US, Canada and Mexico
After the USMCA wasn’t renewed, the future of the agreement stands in question. A pair of trade experts analyze the latest trade talks and explain how promo businesses will be affected.
Earlier this summer, the U.S. announced it wouldn’t renew the U.S.-Mexico-Canada agreement, a trilateral deal between the North American countries that replaced NAFTA six years ago. The news came mere weeks before the U.S. imposed a new 50% tariff on Canada, and a 10% to 12.5% global tariff on more than 60 trade partners.
Now, as the U.S. continues trade talks with Mexico and Canada, it’s fair to say things have gotten pretty heated.
“It’s tough to negotiate the future of a trade agreement in good faith while you’re simultaneously slapping new tariffs on goods that agreement is supposed to protect,” says Ashley Kalyn, an international trade consultant at Canada-headquartered Peacock Tariff Consulting. “Even before there’s a final outcome, the uncertainty itself does damage, not to mention the erosion of trust.”
Companies plan years ahead, she says, and when this trust disappears, businesses must focus on survival instead of prioritizing progress.
On this month’s episode of Promo Insiders Deep Dive, Digital News Editor Tara Lerman speaks with trade compliance experts about how the future of the USMCA could impact promotional products companies, and how businesses can stay afloat amid trade uncertainty.
Mentioned in this episode:
US Will Not Renew the US-Mexico-Canada Agreement
US Announces New Tariffs on Canadian Goods
Consumer Product Safety Commission Launches ‘eFiling’ To Modernize Consumer Product Compliance
Trump Administration Imposes New 10% to 12.5% Tariffs
2026 National Trade Estimate Report on Foreign Trade Barriers
Mexico Imposes Tariffs on China To Curb ‘Back Door’ to US Market
Key Takeaways
• The Trump administration announced the U.S. would not extend the U.S.-Mexico-Canada Agreement, triggering annual reviews.
• The U.S.’s announcement of a 50% tariff on various Canadian goods, under Section 338 of the Tariff Act of 1930, affects goods previously covered by the USMCA agreement.
• Canadian Prime Minister Mark Carney asserted that the U.S. can’t unilaterally dictate trade terms, while Mexico adopted a pragmatic stance. Most Mexican goods remain exempt from new U.S. tariffs.
• Section 338 is a relatively untested legal authority in modern trade policy, and while some recent tariff actions have been struck down by the Supreme Court, these new tariffs may have stronger legal backing.
• Businesses should act with caution, but avoid knee-jerk reactions, beginning by auditing classifications, modeling cost impacts and building supply chain flexibility.