What’s at Stake for Michigan Businesses in the USMCA Review

As federal officials prepare for the 2026 review of the United States-Mexico-Canada Agreement (USMCA), Michigan employers and the business community at large are watching closely for what the process could mean for tariffs, supply chains, investment decisions, and the state’s long-term competitiveness.

During a recent virtual briefing hosted by the Michigan Chamber of Commerce in partnership with the Detroit Regional Chamber and Grand Rapids Chamber, Isabelle Icso, Executive Director of International Policy at the U.S. Chamber of Commerce, outlined what businesses should expect from the review process, broader tariff activity, and the political dynamics shaping negotiations among the U.S., Canada, and Mexico.

Icso said the upcoming review is unlikely to deliver immediate certainty for employers. Rather than a single decision point, the process could become a longer negotiation among the three countries, with potential changes to how often the agreement is reviewed and renewed. For businesses that depend on cross-border supply chains, that uncertainty makes it harder to plan around costs, sourcing, and future investment.

“We’re largely expecting July 1 to come and go, and we’re expecting the parties to continue negotiating well into next year,” Icso said, noting that final resolutions or decisions could be pushed into 2027.

For Michigan, the stakes are especially high. Sandy K. Baruah, President and Chief Executive Officer of the Detroit Regional Chamber, underscored how deeply trade shapes the state’s economy, from manufacturing and automotive to agriculture and related industries. He noted that the Chamber’s advocacy often happens through ongoing, quiet conversations with policymakers and business leaders, where business voices can help explain how trade policy decisions affect employers, workers, and communities across Michigan.

“A unified trilateral trading bloc will be the most effective tool we have in our arsenal to compete and win in the global economy,” Baruah said.

Icso echoed the importance of preserving USMCA as a trilateral agreement among the U.S., Canada, and Mexico. She said the business community is concerned by the current bifurcation of talks, with U.S.-Mexico discussions moving ahead more quickly than U.S.-Canada conversations.

“In terms of what business wants, we want USMCA preserved as a trilateral agreement among the U.S., Canada, and Mexico,” she said. “Enforceability is key. It’s important to hold all parties accountable.”

She added that any potential changes to the agreement should be approached with caution, transparency, and close consultation with stakeholders, warning against outcomes that could weaken the agreement’s trilateral nature or disrupt the seamless movement of goods, services, and investment across borders.

“The goal is to get as close to seamless as possible for goods, services, and investment across all three countries,” Icso said. “That’s what supports the competitiveness of the North American trading bloc.”