Trump Mulls a North American Trade Pact Without Canada

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by Ana Swanson, Matina Stevis-Gridneff and Tyler Pager

February 19, 2026

AI-Generated Deep Dive Summary

U.S. officials are considering significant changes to the United States-Mexico-Canada Agreement (USMCA) that could potentially exclude Canada from the trade pact. This move by President Trump could disrupt business operations across North America, particularly for companies reliant on cross-border trade flows. Trump has hinted at using high-pressure tactics, such as blocking the opening of a new U.S.-Canada bridge, to force Canada into making concessions during renegotiation talks set to begin this summer. The USMCA, which was signed in 2020, governs trade between the three nations and is currently under review. U.S. officials are pushing for changes to address longstanding issues with Canadian trade practices, particularly in sectors like dairy and agriculture. These industries have long been protected by Canada, which the U.S. sees as unfair. Another point of contention is Canada’s liquor distribution policies, where provincial governments have retaliated against U.S. tariffs by removing American alcohol from their shelves. Trump has a history of using leverage to pressure Canada on trade issues. Earlier in 2024, he suspended trade talks after an Ontario-funded advertisement featuring former President Ronald Reagan was aired in the U.S. The ad criticized tariffs, which Trump saw as an affront. This incident highlights Trump’s approach to trade negotiations: using brinkmanship and public relations tactics to achieve his goals. The potential unraveling of the USMCA could have far-reaching consequences for businesses on both sides of the border. Many companies in North America have structured their supply chains around the agreement, relying on its stability for operations. Any changes to the deal could lead to increased costs, disrupted trade flows, and uncertainty in the business community. For readers interested in international trade policy, this situation underscores the fragile nature of cross-border agreements and the potential economic impact of political decisions. The outcome of these negotiations will not only shape U.S.-Canada relations but also have broader implications for global trade dynamics.

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Originally published on NYT Homepage on 2/19/2026