Heft IQ Executive Radar · 2026-10-21

USMCA Is Now Reviewed Every Year. Manufacturers Can Weigh In by January 12

The U.S. did not extend USMCA at the July 1 joint review, so the agreement is now reviewed annually. USTR is taking comments on the 2027 review until January 12, 2027.

What changed

At the July 1, 2026 joint review, the United States did not confirm a new 16-year term for USMCA. The agreement stays in force, but under Article 34.7 the three countries now meet for a joint review every year until each confirms an extension, or until the agreement ends in 2036. On October 5, USTR asked for public comments on the 2027 review: comments and requests to appear at the public hearing are due by January 12, 2027, through USTR's comment portal. USTR asks about any aspect of how the agreement operates, compliance issues, specific actions it should propose, the North American investment climate, and economic security.

Why it matters now

USMCA treatment already affects what manufacturers pay. The Section 301 tariffs that took effect July 24, 2026 add 10% on goods of Canada and Mexico, but exempt products entered duty-free under USMCA. Goods that don't qualify, or aren't claimed under USMCA, pay the additional duty. An agreement that is reviewed every year is one that can change with a year's notice, so the products that depend on it deserve a plan.

What to do this quarter

Pull twelve months of Canada and Mexico entries and mark which were claimed under USMCA. Map those lines to the products and customers they support. Estimate the duty if treatment changed. Decide whether your business should comment by January 12, and on which provisions. Then put a watch on USTR and Federal Register notices for the hearing date and any proposed changes, so the next step reaches the right owner the day it's published.

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