The $2 Trillion Bluff? Why Trump is Threatening to Tear Up His Own Trade Deal
Reports are swirling that President Trump is privately weighing an exit from the US-Mexico-Canada Agreement (USMCA)—the very deal he negotiated to replace NAFTA. With a critical July 1, 2026, "joint review" deadline looming, the White House is signaling that nothing is off the table.
$ESP Here’s why this is happening now and what it actually means for the North American economy:
1. The "Sunset" Pressure Cooker
The USMCA has a "use it or lose it" clause. By July 1st, all three nations must decide if they want to extend the deal for another 16 years. If Trump refuses to sign off, the agreement enters a slow-motion expiration phase. This creates massive uncertainty, which Trump often uses as a primary tool for leverage.
$BANK 2. The New Pain Points
Why would he scrap his own "win"? The administration has three main targets in their sights:
China’s "Backdoor": Washington is frustrated by Chinese companies using Mexico as a hub to ship goods into the U.S. duty-free.
The Auto Industry: The U.S. wants even stricter rules on where car parts are made.
Dairy & Energy: Long-standing disputes with Canada over milk and Mexico over electricity are reaching a breaking point.
3. Leverage or Legacy?
Most trade experts view this as Negotiation 101. By threatening to walk away, the U.S. forces Canada and Mexico to the table with concessions before the review even begins. However, the risk is real: a full withdrawal would disrupt nearly $2 trillion in trade and likely send grocery and car prices soaring.
$DCR The Bottom Line: We aren't just looking at a "review"—we're looking at a high-stakes game of economic chicken. Whether this ends in a "USMCA 2.0" or a return to trade chaos depends on who blinks first before July.
#TradeDeal #USMexicoRelations #BTCMiningDifficultyDrop