Canada
July 2, 2026
US steel trade groups, unions say USMCA must be strengthened
Written by Ethan Bernard
Steel trade groups and unions in the US have weighed in on the USMCA review process, as the US announced it would not renew the trade pact in its current form.
The American Iron and Steel Institute (AISI) and Steel Manufacturers Association (SMA) responded to the July 1 news that the US government would not renew the agreement.
Meanwhile, the United Steelworkers (USW) union and the International Association of Machinists and Aerospace Workers (IAM) spoke more broadly about goals for the review process as negotiations continue.
July 1 marked the first official day of the review process.
AISI
Kevin Dempsey, AISI president and CEO, said the group anticipated the move not to renew. It marks another step in the review process.
“The US government has made clear, both today and in previous announcements, that it is seeking improvements in the USMCA,” Dempsey said in a statement on Wednesday.
He said the trade group looks forward to working closely with US Trade Representative and other stakeholders throughout the review process.
Dempsey underlined AISI’s commitment “to ensure the USMCA is updated in a manner that reinforces resilient North American supply chains and supports a strong American steel industry and downstream steel-intensive manufacturing sectors.”
SMA
Likewise, Philip K. Bell, CAE, SMA president and CEO, said the announcement wasn’t a “surprise.”
“Keep in mind, all that’s occurred here is the decision not to renew the USMCA for an additional 16-year term,” Bell told SMU on Wednesday. “It doesn’t mean that the talks stop, and it doesn’t mean that USMCA ends.”
He pointed out that “we now have joint annual reviews for the next 10 years. So the USMCA continues as it is, and we’ll have a formal mechanism to review it annually for the next decade.”
Bell added that “none of the parties, neither Canada, US, nor Mexico have indicated any intent to withdraw from the agreement.”
Additionally, he said he understood the rationale behind the US decision.
“I think one of the reasons that the United States is taking such a strong position here is when you look at the USMCA region, the US was responsible for 85% of the GDP in the region,” Bell said. “As a result of that, we need to have a USMCA that works for everybody, not just Canada and Mexico.”
He said SMA supports this administration “100%” in the effort to solve trade imbalances and bring manufacturing jobs back to the US, and strengthen the domestic steel industry.
Bell concluded that to bring “Fortress North America” to fruition in the trading bloc, “it’s really going to rely on us having trade policies, tariff regimes, and customs and border protection that are aligned to the greatest extent possible.”
USW, IAM
At the same time, the USW and IAM unions stressed USMCA needs to be strengthened during the review process. Both noted they were originally opposed to the NAFTA agreement, which the USMCA replaced.
“Unfortunately, the promise of the USMCA has fallen short, due to Mexico’s lax enforcement of labor laws, limited corporate accountability, and continued offshoring of production and jobs to Mexico,” USW International President Roxanne Brown said in a statement on Wednesday.
She added: ““Now, with this review, we have an opportunity to make meaningful improvements to the USMCA. We can strengthen rules of origin and enact real penalties for violations.”
Brown said improvements made to improve workers’ rights in Mexico would have positive ramifications for workers throughout North America.
“We need an economy that works for everyone, and as we review the USMCA, we must find lasting ways to put workers and their communities first,” Brown said.
IAM International President Brian Bryant also pushed for the USMCA to further safeguard the workers it represents.
“While USMCA included some improvements over NAFTA, six years later it is clear that the agreement has not done enough to stop the offshoring of good union jobs,” Bryant said in a statement on Wednesday.
He said workers are still watching their jobs leave. “Manufacturing jobs continue to move south of the border. Companies continue to exploit massive wage disparities between the United States and Mexico.”
Bryant added: “The mandatory six-year review of USMCA presents an opportunity to finally fix what is broken.”
He noted it must be strengthened “with tougher labor standards, stronger enforcement mechanisms, improved rules of origin and meaningful measures that discourage corporations from moving jobs out of the United States and Canada in pursuit of cheaper labor.”
The USW and IAM represent workers across the United States and Canada.
