OMAHA (DTN) -- While pressing for improvements and changes, U.S. senators and representatives of farm and business groups defended the United States-Mexico-Canada Agreement (USMCA) on Thursday as reports suggest President Donald Trump continues to privately indicate he wants to withdraw from the trade agreement he reached in his first term.
In total trade, the trilateral agreement combines $1.9 trillion between the three countries, including roughly 40% of all agricultural exports.
Bloomberg reported Trump continues to question why he shouldn't withdraw from the trade agreement, which is set for a review this summer.
Farm groups have been vocal about their support for USMCA. The National Corn Growers Association is spearheading a collection of 40 farm groups under the "Agricultural Coalition for the United States-Mexico-Canada Agreement." The coalition held a press conference in Washington earlier this week and issued a report stressing the need for renewing the trilateral deal.
In a hearing on Thursday, U.S. Senate Finance Chairman Mike Crapo, R-Idaho, noted USMCA passed the Senate in 2020 on an 89-10 vote, the highest Senate vote total ever for a trade deal. Crapo noted he would like to see more enforcement in areas such as "ag biotech, dairy, digital trade, energy" and other areas. At the same time, as the U.S. Trade Representative's Office opened up comments about USMCA, most stakeholders called for the agreement to be extended.
"Many of those public comments and testimony conveyed the singular importance of business certainty," Crapo said.
The Senate hearing also comes just after the House voted Wednesday to revoke tariffs on Canada that President Donald Trump has imposed outside of the USMCA. Six Republicans voted with all but one Democrat in the 219-211 vote on a resolution disapproving of Trump's tariffs on Canada. The Senate could take up the resolution, but Trump would veto it. Trump also lashed out on social media against the House Republicans who voted to repeal the tariffs.
The vast majority of Canadian products fall under USMCA and aren't subject to tariffs. At the same time, Trump has imposed a 35% tariff on Canadian products that don't fall under the agreement with higher tariffs on steel and aluminum. All told, Canadian products were hit with $2.4 billion in tariffs last year.
Agricultural exports to Canada and Mexico combined reached $64 billion at the end of 2024, up 46% from 2020. Through 11 months of 2025, agricultural exports to Mexico were up 1% but exports to Canada were down 5%, according to USDA statistics.
U.S. consumers also are buying significantly more Canadian and Mexican agricultural products. Combined, agricultural imports from the two countries topped $82.5 billion in 2024, up 41% from 2020. Imports from Canada were down 4% in 2025 while imports from Mexico were down 10% through November, according to USDA.
Ted Vander Schaaf, a dairy farmer in Kuna, Idaho, testified Thursday that some elements of the agreement must be strengthened, especially when it comes to tariff rate quotas (TRQs) that the Canadian government has been refusing to use under the trade deal.
"Unfortunately, Canada has sidestepped some of these obligations," Vander Schaaf said.
Sen. Ron Wyden, D-Oregon, concurred with Vander Schaaf's view that Canada hasn't met its obligations when it comes to dairy products.
"Canada has never come into compliance with its market-access commitments under the law, keeping our exports out of the Canadian market," Wyden said.
At the same time, Vander Schaaf said agriculture would suffer greatly if USMCA were dissolved.
"First, if we were to lose this agreement, it would be devastating to rural communities," Vander Schaaf said.
Dairy exports to Canada through the first 11 months of 2025 topped $1.2 billion, an 11% increase from 2024 and were 64% higher than 2020, according to USDA data.
Dairy exports to Mexico in 2025 topped $2.35 billion, up 5% from 2024 and were up 68% from 2020.
Vander Schaaf also added Canada has been shipping more products into the U.S. market that are priced artificially low, which is affecting domestic sales of similar products.
"They are producing a lot of low-cost protein they are undercutting our market with and we would like to see that addressed as well," Vander Schaaf said.
USDA shows Canada exported $527 million in dairy products in the first 11 months of 2025, up 6% from 2024. Canada's dairy exports to the U.S. are up 63% since 2020.
Kevin Brady, who was former chairman of the House Ways & Means Committee when USMCA was negotiated, acknowledged Trump's change of heart on USMCA could simply be a negotiating tactic to reach a better deal.
"The president, as you know, has a negotiating style that is not for the faint of heart," Brady said. "It can be tough and it can be harsh, and no doubt, I think it causes trading partners to think about the relationship with the U.S., both positive and negative ways. But I know, I know this in the end, his goal is to rebalance trade in a way that continues to boost the U.S. economy."
In agriculture, Brady pointed to the growth of agricultural sales to the two countries but also other related investments.
"The greatest benefit for you and me has been the growth in sales to Mexico and Canada, especially in the ag area, has been just a huge win for our industry there, by more than 50% in growing ... They are making investments in agriculture in the supply chain as well. And so in some ways, I don't think that was anticipated."
Sen. Thom Tillis, R-N.C., asked Brady about the impact of tariffs imposed outside the USMCA agreement. Tillis said the tariffs "have a perverse impact" against onshoring manufacturing operations or at least bringing them back to the Western Hemisphere.
Brady agreed, saying the tariffs make it tougher to achieve Trump's goal of streamlining the supply for critical minerals.
"In USMCA, those tariffs are devastating because they break up the integration that occurs," Brady said.
Sen. Raphael Warnock, D-Ga., said the Trump administration has made "undisciplined statements" about withdrawing from the agreement that affects some of the certainty the trade deal is meant to provide farmers.
"I spend a lot of time with farmers all across Georgia and there is so much about that business that is unpredictable," Warnock said. "And so this additional uncertainty could be very problematic for farmers, for small businesses and for suppliers."
Chris Clayton can be reached at Chris.Clayton@dtn.com
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