The USMCA comes up for review on July 1. It was signed six years ago and is not set to expire until 2036. Canada has $1.3 trillion in trade with the US and 90% of that is covered by the USMCA.

Donald Trump is threatening to do away with this agreement.

“USMCA did one thing that I loved. After six years, it comes up for renewal. I don’t know that I’m going to renew it.”

Back in his first term, when he signed the agreement, he had a completely different view of it

 “the most modern, up-to-date, and balanced trade agreement in the history of our country.” 

So why is Donald talking like this? Well, he cannot stand Canada and Mark Carney for not submitting to him. He is pissed off at Mark Carney, plain and simple.

Even though the agreement is set to expire in 2036, any of the three countries can terminate with six months notice.

Donald Trump could by executive order terminate the USMCA, without congressional approval. The keyword here is good. It would result in a constitutional crisis and a lengthy legal battle that could end up going all the way to the Supreme Court. Donald Trump could terminate it. But he would face a major revolt by northern state Republicans in both the house and Senate. He would also face a major revolt in the auto industry.

Will he do it? No he won’t. He is TACO after all. He will chicken out. It is definitely not something to lose sleep over.

That’s all I have for today.