This week, we’ve received the same question from many clients: “I heard CUSMA wasn’t renewed. What does this mean for my business?”
The good news is that CUSMA has not expired, nor has it been terminated.
What Happened
On July 1, 2026, the United States announced that it would not agree to extend the Canada-United States-Mexico Agreement (CUSMA) for another 16-year term at this time. While the headlines have understandably caused concern, this does not mean the agreement has ended.
Instead, CUSMA has entered into the formal review process that was built into the agreement when it was negotiated. This review allows Canada, the United States, and Mexico to assess how the agreement is functioning and determine whether updates should be negotiated.
What Does This Mean Right Now?
For businesses, nothing changes today.
If your products currently qualify for CUSMA preferential tariff treatment, they continue to qualify, provided they meet the applicable rules of origin and certification requirements.
There are:
- No changes to duty-free treatment under CUSMA.
- No changes to customs procedures related to CUSMA claims.
- No immediate action required by importers or exporters.
Business can continue as usual.
What Should Companies Expect?The review process is likely to involve negotiations over the coming months. As with any trade negotiations, there may be discussions around modernization, market access, rules of origin, dispute resolution, or other provisions of the agreement.
At this stage, however, the biggest impact is uncertainty, not operational change.
Businesses should remain informed but avoid making supply chain decisions based solely on media headlines.
Our Recommendation
Continue operating under CUSMA as you do today. Ensure your origin documentation remains current, continue claiming preferential tariff treatment where eligible, and monitor developments as negotiations progress.
At Tradewin, we’ll continue following the review process closely and will provide updates as meaningful developments occur. If future negotiations result in changes that could impact your products, sourcing strategy, or customs compliance, we’ll help you understand what those changes mean and how to prepare.
In today’s trade environment, timely information is just as valuable as regulatory compliance.
We’ll keep you informed every step of the way.
