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usmca
100+ Democrats Urge Trump to Improve US-Mexico-Canada Trade Deal
"We are united in our view that the agreement enacted in 2020 has failed to deliver improvements for American workers, family farmers, and communities nationwide."
Nov 03, 2025
A group of more than 100 congressional Democrats on Monday called on President Donald Trump to use the opportunity presented by the mandatory review of the US-Mexico-Canada Agreement "to make significant and necessary improvements to the pact" that will benefit American workers and families.
"In 2020, some of us supported USMCA, some opposed it, and some were not in Congress," the lawmakers wrote in a letter to Trump led by Reps. Rosa DeLauro (D-Conn.) and Frank Mrvan (D-Ind.). "Today, we are united in our view that the agreement enacted in 2020 has failed to deliver improvements for American workers, family farmers, and communities nationwide."
The USMCA replaced the highly controversial North American Free Trade Agreement (NAFTA), which was enacted during the administration of then-Democratic President Bill Clinton in 1994 after being signed by former Republican President George H.W. Bush in 1992. The more recent agreement contains a mandatory six-year review.
As the lawmakers' letter notes:
Since enactment of the USMCA, multinational corporations have continued to use the threat of offshoring as leverage wielded against workers standing up for dignity on the job and a share of the profits generated by their hard work—and far too often, enabled by our trade deals, companies have acted on these threats. The US trade deficit with Mexico and Canada has significantly increased, and surging USMCA imports have undermined American workers and farmers and firms in the auto, steel, aerospace, and other sectors. Under the current USMCA rules, this ongoing damage is likely to worsen: Since USMCA, Chinese companies have increased their investment in manufacturing in Mexico to skirt US trade enforcement sanctions against unfair Chinese imports of products like electric vehicles and to take advantage of Mexico’s duty-free access to the US consumer market under the USMCA.
These disappointing results contrast with your claims at the time of the USMCA’s launch, when you promised Americans that the pact would remedy the NAFTA trade deficit, bring “jobs pouring into the United States,” and be “an especially great victory for our farmers.”
Those farmers are facing numerous troubles, not least of which are devastating tariffs resulting from Trump's trade war with much of the world. In order to strengthen the USMCA to protect them and others, the lawmakers recommend measures including but not limited to boosting labor enforcement and stopping offshoring, building a real "Buy North American" supply chain, and standing up for family farmers.
"The USMCA must... be retooled to ensure it works for family farmers and rural communities," the letter states. "Under the 2020 USMCA, big agriculture corporations have raked in enormous profits while family farmers and working people in rural communities suffered."
"We believe that an agreement that includes the improvements that we note in this letter" will "ensure the USMCA delivers real benefits for American workers, farmers, and businesses, [and] can enjoy wide bipartisan support," the lawmakers concluded.
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Farmers are in Trouble—Restructuring the USMCA Could Turn Things Around
New labeling requirements to ensure the integrity of domestic markets, as well as price guarantees tied to anti-dumping measures, could improve the economic prospects of producers amid our ongoing trade war.
Sep 16, 2025
Farmers may be the proverbial “canaries in the coal mine” when it comes to the effects of US President Donald Trump’s grand tariff experiment.
Point in fact—corn and soy prices are experiencing precipitous falls in no small part due to tariffs that China has placed on US imports. Cotton prices are dropping for the same reason, as nearly 80% of this crop is destined for export and China slapped a 15% retaliatory tariff on it. Prices for pork and beef appear on a different trajectory, with the latter benefiting from domestic shortages. But even here, trouble is on the horizon as China has cut back on imports from the US. This, as Brazil is exporting more soy, beef, and cotton to China to replace what US farmers once sent. It is no coincidence that the percentage of farm income in 2025 coming from government payments—25%—is approaching the level it was at when the Covid-19 pandemic devastated markets in 2020. The $59 billion dedicated for farmers’ relief payments in the "One Big Beautiful Bill" is testament to the fact that the economic future of rural America appears bleak.
The economic challenges our farmers face places even more pressure on the upcoming United States-Mexico-Canada (USMCA) renegotiations. Even though set for next year, Mexico, Canada, and the US are already staking positions and signaling their intentions. Look no further than Mexico contemplating placing tariffs on Chinese imports, a move clearly meant to stay in the good, however fickle, graces of the Trump administration.
Looking out for US farmers, there are some concrete policies that a renegotiated USMCA could feature. Specifically, new labeling requirements to ensure the integrity of domestic markets, as well as price guarantees tied to anti-dumping measures, could improve the economic prospects of producers as they struggle to weather the uncertainty of our ongoing trade war.
The problem is that in the past, the Trump administration took the wrong approach for how to improve the situation of producers when dealing with our neighbors. Concretely, when Trump renegotiated the North American Free Trade Agreement (NAFTA) last time he was in office, besides rebranding it the USMCA, he also sought to open Canadian markets for US dairy exports.
Eking out marginal increases, those gains ultimately made no real improvement in the prices that farmers received. Proof of this is how dairy farmers have consistently struggled to stay in business, as we have witnessed a 25% nationwide decline from 2017 to 2023 in the number of licensed dairy herds. The recent uptick in dairy prices has nothing to do with USMCA, but instead to a reduction in feed costs and farmers cutting down their herds by selling heifers for beef.
Farmers are known for their resiliency. At the same time, they can only take so much.
Failing to finagle improved prices for farmers from changing exports, this time USMCA negotiations should focus on ensuring the integrity of markets.
The first step toward this would be for the US to reinstate Mandatory Country of Origin Labeling (MCOOL). Originally part of the 2002 Farm Bill before being removed after Canada and Mexico put pressure on the World Trade Organization (WTO), this program would make retailers disclose the origins of their products, including milk, dairy, meat, fish, and fruits, and vegetables. As such, MCOOL allows consumers to make informed purchasing decisions and choose our products instead of picking the cheapest goods of dubious quality that may come from abroad.
Such a change would assist ranchers particularly, as since Trump has taken office, Brazilian beef imports flooded US markets. And since the WTO has been paralyzed since Trump’s first term when he chose not to appoint judges to the institution’s appellate court, now MCOOL can return without opposition.
Next, pricing policies could be put in place to assure a decent income for farmers and prevent dumping.
The US has already made one move in this direction, placing a 17% tariff on tomato imports and accusing Mexican growers of dumping, that is, exporting goods into another market at below cost to drive competitors out of business.
Preventing dumping also cuts both ways, as when NAFTA was first introduced, US corn imports drove Mexican farmers out of business, into poverty, and then to cross the border. Accordingly, if Mexico wants to restrict the flow of some commodity south, such as corn, they should be allowed to.
To avoid a tit-for-tat battle, resolving this issue requires setting floor prices in some capacity. Like what they have already done with wages for automobile workers, negotiators could do the same for grains, as well as for livestock. They could also set limits on what comes from outside the trade bloc, like Mexico appears ready to do with China. The same could be done with Brazil and its beef, or perhaps with the many European countries that send billions of dollars of cheese a year into the US. Cheese is a critical element of dairy pricing, and decreasing imports could lead to more US production and better prices for farmers.
Farmers are known for their resiliency. At the same time, they can only take so much. Export-driven growth may sound like a good idea, but the reality has been different. A renegotiated USMCA that actually puts farmers first could turn things around and give producers a fighting chance to make a decent income and stay on the land.
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For June Dairy Month, Trump Should Celebrate the Canadian System, Not Denounce It
Trump’s plans don’t work for U.S. farmers. In fact, his intention to increase exports and enter the Canadian market fails both American farmers and our partner to the north.
Jun 29, 2025
Uncertainty is nothing new for farmers.
Freak weather changes and fluctuations in the market make planning for the future a gamble, never a sure thing. Dairy farmers have to deal with the additional issues of needing to keep their herds healthy and well-fed, as the price farmers receive in part depends on bacteria counts, and also the fat and protein content of the milk. If things weren’t hard enough, milk is a highly perishable product, which, unlike grains, cannot be stored and then sold when prices improve.
Giving farmers even more headaches these days is President Donald Trump’s on-again, off-again trade war. Specifically, farmers have to endure even more uncertainty than normal as prices for inputs like seed or fertilizer may rise with tariffs, while their export markets abroad are endangered. In this mix of the president’s ongoing trade spats, he's ridiculing Canada for protecting its dairy farmers with their supply management system, alleging that it harms U.S. farmers.
The moral of the story is that exports don’t keep farms in business, but instead allow larger operations to capture market share for themselves while driving out the smaller operations that have long defined U.S. dairy.
But here’s the reality—Trump’s plans don’t work for U.S. farmers. In fact, his intention to increase exports and enter the Canadian market fails both American farmers and our partner to the north.
Mexico has long been the main customer for our dairy exports and is regularly the No. 1 importer of all U.S. goods. This is a mutually beneficial arrangement as Mexico is a milk deficit country and meeting their domestic consumption needs requires imports. That’s how trade should work—when one country has stuff to sell that another country wants to buy, everyone wins.
With our neighbors to the north, the story is much different.
Canadians do not want our products forced into their market. Actually, Canadians want their system to stay as it is. It’s not difficult to see why. The Canadian supply management system ensures dairy farmers a fair price for their milk by tying domestic dairy production to consumption. Prices are negotiated in periodic meetings between farmers and processors to assure a baseline cost of production for producers and an adequate supply for domestic needs. Unlike the U.S. system, in which price controls were lifted for dairy in the 1980s, Canadian dairy farmers have a semblance of certainty year after year. U.S. dairy producers must fend for themselves, adopting a “get big or get out” mentality and increasing production whenever they can to maintain some kind of financial security. This push to constantly increase production leads to chronic overproduction and price volatility. Also unlike the U.S. system, Canadian farmers do not rely on tax-payer financed bailouts, or inadequate insurance payments that keep American farmers hanging on by a thread.
Furthermore, the production treadmill promoted by U.S. government policy has caused the loss of small farms and the hollowing out of rural communities. Trump continued this “get big or get out” mantra the first time he was in office, targeting Canadian dairy much like he is doing now. During the renegotiation of North American Free Trade Agreement into the U.S.-Mexico-Canada Agreement (USMCA), the Canadian market was slightly opened to U.S. dairy exports.
Despite the heralding of this change a “win” for farmers, it has proved to be anything but.
Specifically, even though exports to Canada have nearly doubled since 2018, U.S. farmers continue to exit the industry at alarming rates. While U.S. dairy operations numbered at about 34,000 operations in 2020, the year when the USMCA was officially passed, that number fell to just about 26,000 by 2023—a 25% decrease.
The moral of the story is that exports don’t keep farms in business, but instead allow larger operations to capture market share for themselves while driving out the smaller operations that have long defined U.S. dairy.
Particularly as we celebrate June Dairy Month, we should learn from the Canadian system instead of denouncing it. Granted, Canada’s supply management is not perfect—few government policies are. But their system provides for fair returns for farmers and certainty in a profession already marked by so many challenges. A similar production management system in the U.S. could ensure farmers a fair milk price thereby eliminating the need for taxpayer subsidies, while providing consumers with fairly priced, locally produced dairy. Let’s stop championing an economic vision for agriculture that has already been shown to be a failure.
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