A container ship prepares to leave the Packer Avenue Marine Terminal at the Port of Philadelphia.

President Donald Trump said he will not reauthorize the United States' trade deal with Canada and Mexico, setting the stage for months or years of negotiations over provisions governing trade in automobiles and other key industries.

The countries are facing a July 1 milestone to extend the pact, as is, for 16 years. Such an extension wasn't expected, even though Trump negotiated the United States–Mexico–Canada Agreement (USMCA) during his first term; since returning to office, the U.S. president has been escalating trade tensions with the nation's neighbors. Without an extension, the deal will enter rolling annual reviews but remain in force for up to a decade, unless one country exits it entirely.

"I'm not looking to renew it," Trump told reporters today at the White House. "Because, to be honest with you, the United States does much better. We don't need anything that Canada has, we don't need anything that Mexico has, but they need everything that we have, and they have to treat us better."

The Mexican and Canadian governments did not immediately reply to a request for comment. The next round of U.S.–Mexico talks is set for this month, followed by a third in July. The U.S. and Canada have not yet launched formal negotiations.

Mexico and Canada are two of the United States' largest trading partners, accounting for nearly $2 trillion in annual trade. Goods that are compliant with the agreement have largely been exempt from Trump's barrage of tariffs, helping keep prices lower for U.S. consumers.

Trump did not say whether he was considering fully exiting the deal, which any party can do with six months' notice.

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