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The future of the United States-Mexico-Canada Agreement (USMCA) is entering a period of uncertainty that could have significant implications for the construction industry, supply chains, and the broader U.S. economy. During the agreement’s scheduled six-year review in July 2026, the Trump Administration declined to extend the trade pact through 2036, triggering annual reviews over the next decade while the United States, Mexico, and Canada negotiate potential changes. The agreement remains in effect during these negotiations, but the decision signals that the Administration is seeking revisions to strengthen U.S. manufacturing, agriculture, and other domestic industries. U.S. Trade Representative Jamieson Greer acknowledged that several important issues will require additional negotiations, noting that “there are some issues in USMCA which take a longer time to address.”

Why This Matters to ASA Members – For subcontractors and specialty trade contractors, North American trade is closely tied to construction costs and project delivery. The United States, Mexico, and Canada share deeply integrated supply chains that provide many of the materials and products used throughout the construction industry. Steel, aluminum, lumber, electrical equipment, mechanical components, construction machinery, and countless manufactured products regularly move across North American borders before reaching U.S. construction projects. Any disruption to those supply chains could affect material availability, pricing, and project schedules.

Mexico and Canada remain the United States’ two largest trading partners, with more than $700 billion in goods traded during 2026. Many products used on commercial, industrial, and infrastructure projects crossed international borders multiple times during manufacturing before final assembly.

Construction Industry Watching Closely – Although the Administration is seeking to strengthen domestic manufacturing and encourage more North American production, businesses are also emphasizing the importance of maintaining predictable trade rules. More than 500 business, manufacturing, and agricultural organizations—including the Business Roundtable, National Association of Manufacturers, U.S. Chamber of Commerce, and numerous industry groups—have urged the Administration to preserve the USMCA while pursuing targeted improvements. Major companies such as General Motors, Land O’Lakes, and Cisco have also supported maintaining the agreement with strategic updates. For the construction industry, certainty in trade policy helps stabilize supply chains, control material costs, and support long-term project planning.

Congressional Role – Any major revisions to USMCA could require congressional approval, although legal questions remain over whether a president could withdraw from the agreement without congressional authorization. Members of Congress from both parties are expected to play an active role in shaping the future of the agreement, with priorities ranging from stronger labor enforcement to updated rules designed to increase U.S. competitiveness.

Looking Ahead – ASA will continue monitoring developments surrounding USMCA negotiations as Congress and the Administration work toward potential revisions. Maintaining reliable North American supply chains while strengthening American manufacturing remains a critical balance for the construction industry. For ASA members, the outcome of these negotiations could influence material costs, equipment availability, workforce demand, and the overall stability of the construction marketplace for years to come. As negotiations continue through the annual review process, ASA will keep members informed about policy changes that may affect subcontractors and specialty trade contractors nationwide.