USMCA renewal avoids expected confrontation as Iran conflict dominates Washington's attention

The anticipated political fight over renewing the North American trade pact failed to materialize after the Iran war shifted US priorities, leading to a muted review process.

• The US confirmed it will not extend the USMCA for another 16 years but stopped short of demanding renegotiation or threatening withdrawal.
• The 1 July virtual meeting between the US, Canada and Mexico was subdued, lacking the confrontation many had predicted.
• US Trade Representative Jamieson Greer argued that the White House's tariff strategy has already reshaped North America's economic ties, making a confrontational approach unnecessary.
• Canadian Prime Minister Mark Carney said he will not rush to sign a bad agreement but is ready to conclude a deal if the right terms emerge.