The United States-Mexico-Canada Agreement (USMCA) entered into force on July 1 and replaced the North American Free Trade Agreement (NAFTA).
USMCA is taking effect while tensions between the U.S. and Canada are growing—President Donald Trump recently threatened to place tariffs again on Canadian aluminum imports.
The U.S. is pressing Canada to impose quotas to slow the surge of its export of aluminum or be faced with a 10 percent tariff. Aluminum tariffs were lifted only a year ago in May 2019, and reimposing the duty is likely to prompt retaliation from Canada.
