U.S. Declines to Renew USMCA Trade Pact

The Trump administration announced yesterday that it will not renew the U.S.-Mexico-Canada Agreement (USMCA).

The decision keeps the USMCA in effect for another decade unless one of the three countries withdraws, while setting up annual reviews that could lead to major renegotiations.

The U.S. could pursue separate trade agreements with Canada and Mexico. The decision not to renew also could create momentum for a new softwood lumber agreement with Canada, a step NAHB has long urged.

Products from Mexico and Canada covered by the USMCA, including Canadian lumber and other building materials, are currently exempt from U.S. tariffs.

Separately, the U.S. Department of Commerce has signaled it plans to reduce antidumping and countervailing duties on Canadian softwood lumber imports in mid-August, lowering the current rate of about 35% to 25% after its annual review.

Commerce began its seventh administrative reviews of the softwood lumber antidumping and countervailing duty orders last year and released preliminary findings on April 13. The agency is expected to issue final results next month, when the lower duties would take effect.