The United States has blocked the renewal of the USMCA, the North American trade agreement linking the US, Canada, and Mexico, in a move that risks significant disruption to British supply chains. The decision, confirmed by the White House late on Wednesday, follows months of unresolved disputes over automotive rules of origin and digital trade provisions. UK officials have expressed alarm, noting that the agreement underpins critical imports of machinery, pharmaceuticals, and agricultural goods.
Without renewal, tariffs could revert to World Trade Organisation terms, raising costs for British manufacturers and retailers already grappling with inflation. Downing Street has called for urgent consultations with Washington, but analysts warn that the blockage may signal a broader shift towards protectionism under the current US administration.
