US, Mexico Launch Three-Round USMCA Talks Excluding Canada

The U.S. and Mexico have initiated bilateral negotiations to revise the USMCA, scheduling three rounds through July without Canadian participation. This follows May 26 warnings that the July 1 deadline risked prolonged uncertainty, annual reviews for up to 10 years, and reduced foreign investment that could pressure the peso. Talks will target economic security and stricter rules of origin to increase U.S. content, while some tariffs on Mexican and Canadian goods may persist. The absence of Canada and lingering trade disputes heighten downside risks for North American supply chains and cross-border flows, with USMCA previously supporting nearly $1.6 trillion in trilateral trade.