U.S. President Donald Trump had warned of imposing auto tariffs. Canada and Mexico were able to secure annual export quota allowances to the U.S. through side letter agreements, which allow for growth in duty-free continental auto trade. U.S. steel and aluminum tariffs remain in place, but the three governments have committed to revisit the issue in the near-term.
President Trump will provide the text of the agreement for Congressional review. With U.S. midterm elections to be held in November, new lawmakers in the U.S. will likely pass the enabling legislation.
It’s likely the U.S. president will sign the agreement before the new Mexican President Andrés Manuel López Obrador (AMLO) enters office on December 1, 2018. A 60-day period of edits and revisions by U.S. trade staff is currently underway and should be completed by early December.
Based on U.S. guidelines in the Trade Promotion Authority, the expected passage into law in the US would likely occur around the summer of 2019. The USMCA also needs to be passed in the Mexican and Canadian legislatures.