It is transparently obvious now that Canada is going to rely on UniParty (Corporate) opposition to President Trump in the dissolution of the USMCA (CUSMA) in favor of two distinctly different bilateral trade agreements; one with Canada and one with Mexico.
A bilateral trade negotiation between the United States and Canada would be devastating to the interests of the Canadian government. Particularly after the Venezuela operation and new strategic relationship with the United States, Canada has almost zero points of leverage to negotiate anything similar to their current exploitative trade position.
Canada is going to rely on congress to stop Trump from forcing reciprocity in the bilateral discussions. However, as a positive indicator that President Trump will factually have congressional support for the elimination of the USMCA, Democrat Senator Ruben Gallego has written a letter to President Trump requesting a comprehensive review. [LETTER HERE]
[SOURCE]
This is a key Senate democrat who notes the problem. One of Gallego’s top points of concern is the loophole that Canada uses to assemble Chinese component parts into finished goods for tariff free distribution into the United States.
Ever since President Trump won the 2024 election, Mexico has been taking proactive independent action to block Chinese component goods. But Canada has done the opposite and begun to enhance their trade relationship with China to take even more Chinese component and finished goods.
Gallego writes to U.S. Trade Representative Jamieson Greer from the position of wanting to increase wages and enhance jobs in both Mexico and the USA, growing both economies. However, Gallego’s advocacy simultaneously bolsters why the USMCA should be dissolved and also puts Canada at a distinct disadvantage.
MEXICO – Mexico’s President Claudia Sheinbaum told reporters during her morning news briefing on Wednesday that her U.S. counterpart, Donald Trump, is open to doing away with the U.S.-Mexico-Canada trade agreement (USMCA) and replace it with individual trade deals with each country.
[…] “There might be revisions that create bilateral deals instead of involving the three countries because some things are more important between Mexico and the United Sates or between Canada and the United States,” said Sheinbaum. “Not everything has to be trilateral.”
Mexico’s president said the subject was brought up by Trump during a Tuesday phone conversation. […] According to Sheinbaum, her country is ready to consider possible changes. (read more)
Just like the original NAFTA dissolution, if Senate democrats agree the USMCA is structurally flawed then Canada will lose its only hope to retain the trilateral agreement.
It appears that some Senate democrats like Gallego recognize this issue and support the need for exceptional change.
There is a significant difference between Mexico and Canada as it pertains to trade. Two distinctly different bilateral trade agreements would be the best outcome for the USA.
Team Mexico have already been holding bilateral discussions with USTR Jamieson Greer, and I suspect the broad outlines of a free trade agreement between the U.S and Mexico have already been agreed.
While Mexico has been working diligently for 16 months to get into alignment with the USA on a new free trade agreement, Canada has been doing everything possible to retain their “elbows up” position in opposition to the USA. This will not work out well for Canada.
“The key thing that has struck me, and I think it has struck all Canadians, is so many of these guys in the Trump administration, frankly, they just hate Canada,” said Brian Clow, former Prime Minister Justin Trudeau’s deputy chief of staff who led Canada-U.S. affairs. {source}
“Canada joining at a later date”?


