Marketplace All-in-One What's next for the USMCA?
Mar 27, 2026
Lori Wallach, director of the Rethink Trade Program and trade policy analyst, breaks down the USMCA review. She discusses how the deal underdelivered on jobs and wages. She outlines where negotiations with Mexico and Canada stand. She highlights wage imbalances in Mexico and Canada’s EV policy complications for North American supply chains.
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USMCA Delivered Opposite Of Promises
- The USMCA has produced outcomes opposite to its promises, with fewer overall and auto manufacturing jobs in the U.S. since it took effect.
- Lori Wallach cites larger trade deficits with Mexico and Canada and says fixing the agreement could address these structural problems if the president chooses to renegotiate.
Low Mexican Wages Are The Core Issue
- Mexico's low wages remain the central structural problem preventing the USMCA from raising North American manufacturing wages.
- Wallach argues higher Mexican wages and rules to block unfairly priced imports are required to rebalance trade and spur U.S. jobs.
Bilateral Talks Have Moved Faster With Mexico
- Negotiations are proceeding as bilateral meetings rather than three-way talks, with U.S.-Mexico talks further along than U.S.-Canada.
- Wallach notes Mexico and Canada are meeting separately with the U.S., and Mexico's meetings have progressed more so far.