<div dir="ltr"><a href="https://www.epi.org/publication/did-trump-really-fix-nafta-what-usmca-failed-to-do-and-how-to-put-workers-first-in-north-american-trade/#full-report">https://www.epi.org/publication/did-trump-really-fix-nafta-what-usmca-failed-to-do-and-how-to-put-workers-first-in-north-american-trade/#full-report</a> <br><div><br></div><div><h1 class="gmail-page-title" style="box-sizing:border-box;margin:0.25em 0px 0.6em;padding:0px;border:0px;outline:0px;font-family:"Harriet Display",serif;font-size:2.5em;font-stretch:inherit;line-height:1.1;vertical-align:baseline;color:rgb(51,51,51)"><span class="gmail-title-presub" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-weight:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">Did Trump really fix NAFTA?</span><span class="gmail-subtitle" style="box-sizing:border-box;margin:0.5em 0px 0px;padding:0px;border:0px;outline:0px;font-family:proxima-nova,sans-serif;font-size:0.666em;font-style:inherit;font-variant-caps:inherit;font-weight:400;font-stretch:inherit;line-height:1.2;vertical-align:baseline;display:block">What USMCA failed to do and how to put workers first in North American trade</span></h1><div class="entry-meta" style="font-size:16px;box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:proxima-nova,"Proxima Nova",sans-serif;font-stretch:inherit;line-height:inherit;vertical-align:baseline;color:rgb(51,51,51)"><p class="gmail-authors" style="box-sizing:border-box;margin:0px 0px 1em;padding:0px;border:0px;outline:0px;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:1.4em;vertical-align:baseline">By<span class="gmail-Apple-converted-space"> </span><a href="https://www.epi.org/people/adam-s-hersh/" style="box-sizing:border-box;margin:0px;padding:0px;vertical-align:baseline;color:rgb(190,30,46);text-decoration:none;font-weight:700;background-position:0px 0px">Adam S. Hersh</a><span class="gmail-Apple-converted-space"> </span>• December 11, 2025</p><p class="gmail-authors" style="box-sizing:border-box;margin:0px 0px 1em;padding:0px;border:0px;outline:0px;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:1.4em;vertical-align:baseline"><span class="gmail-summary-label" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:"Harriet Text",Georgia,serif;font-size:18.399999618530273px;font-weight:700;font-stretch:inherit;line-height:inherit;vertical-align:baseline">Summary:</span><span style="font-family:"Harriet Text",Georgia,serif;font-size:18.399999618530273px"><span class="gmail-Apple-converted-space"> </span>Trump replaced NAFTA with the United States-Mexico-Canada Agreement in 2020. But his USMCA has so far failed to make trade work for North American workers. </span><br></p></div></div><div><h4 style="box-sizing:border-box;margin:1em 0px 0.5em;padding:0px;border:0px;outline:0px;font-family:proxima-nova,sans-serif;font-size:15pt;font-stretch:inherit;line-height:1.15;vertical-align:baseline;color:rgb(51,51,51)">Key findings</h4><ul style="font-size:16px;box-sizing:border-box;margin:1em 0px 1em 2em;padding:0px;border:0px;outline:0px;font-family:proxima-nova,"Proxima Nova",sans-serif;font-stretch:inherit;line-height:1.4em;vertical-align:baseline;color:rgb(51,51,51)"><li style="box-sizing:border-box;margin:0px 0px 0.5em;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline;list-style-type:disc"><p style="box-sizing:border-box;margin:1em 0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:1.4em;vertical-align:baseline"><span class="gmail-TextRun gmail-SCXW80270320 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline"><span class="gmail-NormalTextRun gmail-SCXW80270320 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">The U.S. trade deficit with Mexico and Canada has widened sharply since Trump signed USMCA; it reached a projected </span><span class="gmail-NormalTextRun gmail-SCXW80270320 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">$263 billion</span><span class="gmail-NormalTextRun gmail-SCXW80270320 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline"> in 2025</span><span class="gmail-NormalTextRun gmail-SCXW80270320 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">, </span><span class="gmail-NormalTextRun gmail-SCXW80270320 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">up from </span><span class="gmail-NormalTextRun gmail-SCXW80270320 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">$125 billion</span><span class="gmail-NormalTextRun gmail-SCXW80270320 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline"> in 2020</span><span class="gmail-NormalTextRun gmail-SCXW80270320 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">. </span></span><span class="gmail-EOP gmail-SCXW80270320 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline"> </span></p></li><li style="box-sizing:border-box;margin:0px 0px 0.5em;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline;list-style-type:disc"><p style="box-sizing:border-box;margin:1em 0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:1.4em;vertical-align:baseline"><span class="gmail-TextRun gmail-SCXW31259278 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline"><span class="gmail-NormalTextRun gmail-SCXW31259278 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">Although </span><span class="gmail-NormalTextRun gmail-SCXW31259278 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">the agreement </span><span class="gmail-NormalTextRun gmail-SCXW31259278 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">sought to revitalize </span><span class="gmail-NormalTextRun gmail-SCXW31259278 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">U.S. </span><span class="gmail-NormalTextRun gmail-SCXW31259278 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline">manufacturing industries, manufacturers across the country shed or furloughed more than 576,000 jobs since he signed the agreement.</span></span><span class="gmail-EOP gmail-SCXW31259278 gmail-BCX0" style="box-sizing:border-box;margin:0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline"> </span></p></li><li style="box-sizing:border-box;margin:0px 0px 0.5em;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline;list-style-type:disc"><p style="box-sizing:border-box;margin:1em 0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:1.4em;vertical-align:baseline">In the critical automotive industry that Trump said he wanted to reshore, imports of motor vehicles and parts from Mexico nearly doubled following USMCA, rising to $274 billion in 2024, up from $196 billion in 2019: Light-duty vehicles imports from Mexico rose 36% while imports of medium- and heavy-duty vehicles increased a whopping 256%.</p></li><li style="box-sizing:border-box;margin:0px 0px 0.5em;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline;list-style-type:disc"><p style="box-sizing:border-box;margin:1em 0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:1.4em;vertical-align:baseline">Though some USMCA labor reforms are worth preserving and expanding, the overall wage gap in manufacturing still fuels corporate offshoring to Mexico’s low-wage, low-standard environment. Mexican manufacturing wages are just $2.76 an hour—a mere 10% of U.S. manufacturing wages.</p></li><li style="box-sizing:border-box;margin:0px 0px 0.5em;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:inherit;vertical-align:baseline;list-style-type:disc"><p style="box-sizing:border-box;margin:1em 0px;padding:0px;border:0px;outline:0px;font-family:inherit;font-size:inherit;font-style:inherit;font-variant-caps:inherit;font-stretch:inherit;line-height:1.4em;vertical-align:baseline">USMCA left a gaping loophole for Chinese manufacturers to exploit duty-free access to North American markets without reciprocal market access for U.S. manufacturers. Chinese firms expanded their direct investment footprint in Mexico by as much as 288% through 2023.</p></li></ul><h4 style="box-sizing:border-box;margin:1em 0px 0.5em;padding:0px;border:0px;outline:0px;font-family:proxima-nova,sans-serif;font-size:15pt;font-stretch:inherit;line-height:1.15;vertical-align:baseline;color:rgb(51,51,51)">Why this matters</h4><p style="font-size:16px;box-sizing:border-box;margin:1em 0px;padding:0px;border:0px;outline:0px;font-family:proxima-nova,"Proxima Nova",sans-serif;font-stretch:inherit;line-height:1.4em;vertical-align:baseline;color:rgb(51,51,51)">USMCA is now up for its 2026 sunset review, giving all three countries a chance to decide its future. Trump’s version has already failed workers across North America and urgently needs serious reform. Simply walking away would not fix USMCA’s fatal flaws, but would instead saddle workers with another 10 years of deindustrialization under unfair trade rules.</p><h4 style="box-sizing:border-box;margin:1em 0px 0.5em;padding:0px;border:0px;outline:0px;font-family:proxima-nova,sans-serif;font-size:15pt;font-stretch:inherit;line-height:1.15;vertical-align:baseline;color:rgb(51,51,51)">How to fix it</h4><p style="font-size:16px;box-sizing:border-box;margin:1em 0px;padding:0px;border:0px;outline:0px;font-family:proxima-nova,"Proxima Nova",sans-serif;font-stretch:inherit;line-height:1.4em;vertical-align:baseline;color:rgb(51,51,51)">Instead of destabilizing North American trade, Trump and his negotiators should use this opportunity to cement a model that protects workers while preserving the mutual benefits of trade. This requires stronger regional and labor value content rules, closing loopholes to unfairly traded foreign content, and expanding cooperation to enforce strong rules across all three countries.</p><p style="font-size:16px;box-sizing:border-box;margin:1em 0px;padding:0px;border:0px;outline:0px;font-family:proxima-nova,"Proxima Nova",sans-serif;font-stretch:inherit;line-height:1.4em;vertical-align:baseline;color:rgb(51,51,51)"><b>READ THE FULL REPORT: </b><span style="font-family:Arial,Helvetica,sans-serif;font-size:small;color:rgb(34,34,34)"><a href="https://www.epi.org/publication/did-trump-really-fix-nafta-what-usmca-failed-to-do-and-how-to-put-workers-first-in-north-american-trade/#full-report">https://www.epi.org/publication/did-trump-really-fix-nafta-what-usmca-failed-to-do-and-how-to-put-workers-first-in-north-american-trade/#full-report</a> </span></p></div></div>