Senator Bill Hagerty, a Republican from Tennessee, described Trump's tariff threats as "regrettably naïve." It is expected that the U.S. president will negotiate the T-MEC trade agreement before 2026, according to reports from The Wall Street Journal.
The T-MEC regulates around $2 trillion in trade between the United States, Mexico, and Canada, having replaced China as the U.S.'s main trading partner since its signing. Mexico and Canada send approximately 80 percent of their exports to the United States, indicating a close integration of their manufacturing, agricultural, and raw materials sectors.
Trump has expressed his intention to impose tariffs of 25 percent on Canada and Mexico starting February 1. The president would use these tariff threats as leverage to renegotiate the agreement, particularly concerning automotive rules to encourage car plants to move to the U.S.
Trump is expected to turn to Howard Lutnick and Jamieson Greer to address the T-MEC renegotiation. Senator Kevin Cramer has stated that there will be a reboot of the agreement and has been in communication with Canadian officials to address Trump's demands and avoid potential tariffs.
Lawmakers close to Trump have warned Canada and Mexico not to underestimate the president's tariff threats. Mexico, for its part, has signed a broad trade memorandum to assess the impact of the T-MEC on workers, farmers, and ranchers.
