United States pursues separate trade deals with Mexico and Canada

The United States is negotiating trade deals separately with Mexico and Canada instead of updating the USMCA agreement as a whole. Mexico is in talks first, with Canada expected to follow. Officials want to reach two short-term deals before the end of the year, then move on to harder issues like labor rules and environmental standards. Mexico is hoping to reduce tariffs on steel, aluminum, and cars. Whatever terms Mexico wins, Canada will probably push for the same or better. Experts warn that separate deals could break apart the three-country trade framework in practice, even if it still exists on paper. Mexico has also recently signed a new trade agreement with the European Union.