Potential USMCA Exit and North American Trade Disruptions
U.S. President Trump may withdraw from the United States-Mexico-Canada Agreement in 2026, according to recent statements by U.S. Trade Representative Greer reported by Politico. This potential trade agreement withdrawal could impact North America's economic landscape, influencing broader macroeconomic conditions and investor sentiment amid existing tensions and tariff negotiations with Mexico and Canada.
Trump Considers USMCA Withdrawal Amid Ongoing Trade Tensions
U.S. Trade Representative Greer noted that President Trump is contemplating withdrawing from the USMCA next year, citing unresolved trade disputes. "U.S. President Trump may decide next year to withdraw from the USMCA trade deal," said U.S. Trade Representative Greer. Tensions have escalated despite recent negotiations. Mexico and Canada remain key trading partners, negotiating tariffs under pressure. The current administration's approach involves leveraging trade tactics initiated during earlier negotiations.
Withdrawing from USMCA would potentially lead to higher tariffs and economic uncertainty. Immediate effects include disrupted supply chains and strained cross-border trade relations. This potential move adds to existing economic volatility amid trade negotiations.
Government officials and economic analysts expressed concerns over potential disruptions. Key figures called for strategic discussions to minimize economic fallout. Reactions highlight the complexities of maintaining balanced trade policies amid geopolitical strategies.
Historical Precedents and Market Influences
The possible withdrawal from USMCA by the U.S. echoes Trump's previous trade policy maneuvers, recalling tariff threats during NAFTA renegotiations that preceded USMCA's formation in 2018.
Ethereum Market Performance and Geopolitical Context
Ethereum (ETH) holds a market cap of $385.11 billion, with its price at $3,190.75 as of December 4, 2025. Reporting a 24-hour trading volume of $30.64 billion, Ethereum's price shifted 3.87% upward in the past day.
The Coincu research team anticipates that geopolitical shifts like USMCA's potential withdrawal could indirectly influence market confidence, reflecting on cryptocurrency prices and trade-dependent sectors. Increased market volatility based on macroeconomic conditions might result, emphasizing strategic investor positioning. Increased market volatility may also affect cryptocurrencies such as Ethereum.