US Trade Representative Jamieson Greer said Canada has declined to finalize a bilateral trade agreement after months of negotiations between the two countries. Bilateral trade exceeded $380 billion in the previous year. The breakdown follows Washington’s decision on July 1, 2026, not to renew CUSMA, Canada’s name for the USMCA, for another 16-year term. Instead, the United States activated rolling annual reviews, leaving the agreement in place until at least 2036 unless one side formally withdraws. The talks addressed stricter rules of origin, greater access to Canada’s dairy market, trade deficits, digital trade and concerns about Chinese investment entering North America through Canada. Canada also rolled back its Digital Services Tax, but Greer said the move had not earned significant negotiating credit. President Trump had paused planned 50% tariffs on about $20 billion in Canadian goods while discussions continued. That pause was temporary, and Canada’s refusal to complete the deal could increase pressure to reinstate the tariffs. The existing USMCA framework remains in force, but annual reviews may turn a previously stable trilateral arrangement into recurring negotiations and opportunities for escalation or concessions.