- Greer, Ebrard discuss stronger rules of origin for trade pact
- US, Mexico, Canada face July 1 review to decide future of USMCA
- Canada’s role in talks unclear as US-Canada relations sour
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US, Mexico agree to begin talks on USMCA reforms, timing unclear
WASHINGTON, Jan 28 (Reuters) – U.S. Trade Representative Jamieson Greer and Mexican Secretary of Economy Marcelo Ebrard agreed on Wednesday to begin formal discussions on possible reforms to the United States-Mexico-Canada trade agreement, Greer’s office said.
Possible reforms for the USMCA Joint Review include stronger rules of origin for industrial goods, more collaboration on critical minerals, increasing efforts to defend workers and producers, and U.S.-Mexican efforts to combat “the relentless dumping of manufactured goods in our region,” the USTR’s office said in a statement.
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USTR gave no details on timing for the talks and its statement did not say whether Canada would be involved. A USTR spokesperson did not immediately respond to a request for clarification.
Under the trilateral trade deal that took effect in 2020, the U.S., Mexico and Canada must launch a joint review of the trade pact by July 1, its sixth anniversary, to confirm their intention to renew it for a 16-year period or make modifications, in what USTR has described as a “sunset clause.”
Greer told lawmakers in December the USMCA’s “shortcomings are such that a rubberstamp of the agreement is not in the national interest” of the U.S. He has said the pact is not equipped to deal with surges of exports and investment from non-market economies such as China into the region.
Greer told lawmakers in December the USMCA’s “shortcomings are such that a rubberstamp of the agreement is not in the national interest” of the U.S. He has said the pact is not equipped to deal with surges of exports and investment from non-market economies such as China into the region.
U.S. President Donald Trump has been more blunt, saying this month that the trilateral trade pact was “irrelevant” for the U.S. despite a highly integrated North American economy.
After Wednesday’s meeting, Ebrard called the discussion positive in a social media video, and said the two sides talked about next steps for the USMCA and covered new U.S. tariffs, including those affecting Mexico’s auto exports to the U.S.
“This year it has to be reviewed, as you know,” Ebrard said of USMCA. “We have already moved forward on many issues so that the review goes as quickly and as well as possible.”
USMCA has shielded Mexico from the bulk of President Trump’s tariffs, as goods that comply with its rules of origin can enter the U.S. duty-free.
Mexico’s Economy Ministry on Wednesday reported that the country’s exports reached a record high of nearly $665 billion in 2025, growing 7.6% from the previous year, citing data from the national statistics institute. The United States accounted for 83% of the exports, followed by Canada at 3%, China at 2%, Germany at 1% and South Korea at 1%, according to the report.
THREATS TO CANADA
U.S. trade relations with Canada have worsened over the past week with President Trump last weekend threatening to slap 100% duties on Canadian goods if Ottawa proceeds with a limited trade deal with China that is expected to allow imports of up to 49,000 Chinese-made electric vehicles.
U.S.-Canada trade relations had already soured even before Canadian Prime Minister Mark Carney made a speech at the World Economic Forum that angered Trump.
Carney on Wednesday in comments to lawmakers denied that he has retreated from his speech in Davos, Switzerland, in which he urged nations to accept the end of the rules-based global order that Washington had once championed.
This drew criticism from U.S. Treasury Secretary Scott Bessent, who cautioned Carney against picking a fight with the U.S. as the USMCA review approaches.
Bessent said on CNBC television that Carney “rose to power on an anti-American, anti-Trump message, and that’s not a great place to be when you’re negotiating with an economy that is multiples larger than you are and your biggest trading partner.”
Reporting by David Lawder in Washington, Costas Pitas in Los Angeles and Brendan O’Boyle; Additional reporting by Iñigo Alexander in Mexico City; Writing by David Lawder and Ryan Patrick Jones; Editing by Tom Hogue
Our Standards: The Thomson Reuters Trust Principles.
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Trump says ‘Iran lies and cheats’ as IRGC emerges as dominant force in negotiations with US
Trump threatens more strikes on Iran at NATO summit
Fox News senior strategic analyst retired Gen. Jack Keane analyzes the latest U.S. strikes on Iran, the Strait of Hormuz’s strategic importance and breaks down Ukraine’s request for more aid on ‘America’s Newsroom.’
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As President Donald Trump voiced growing frustration Wednesday with Iranian negotiators, accusing them of lying and cheating, the latest escalation has exposed an even more fundamental problem for Washington: whether the officials at the negotiating table have the power to deliver an agreement — or whether anyone in Tehran does.
“I don’t know if we’re going to have a deal. We may just do it without a deal,” Trump said at the NATO summit in Ankara. “These people, they lie and they cheat.”
But Trump’s frustration with Iran’s negotiators is only part of the problem. Since the death of Ayatollah Ali Khamenei, it has become increasingly unclear who in Tehran has the authority to make — and enforce — an agreement.
TRUMP SAYS IRAN CEASEFIRE IS ‘OVER’ AFTER IRANIAN ATTACKS TRIGGER MASSIVE US RESPONSE
Tehran has deployed a new front on social media including an influence campaign to sway Americans and undermine President Donald Trump’s push for a nuclear deal. (Hamed Malekpour / Middle East Images / AFP via Getty Images)
Mojtaba Khamenei succeeded his father as supreme leader after the elder Khamenei was killed in the opening U.S.-Israeli attacks on Feb. 28. But Mojtaba has not appeared publicly since the attack, and U.S. assessments cited by Reuters have described authority as dispersed among senior Revolutionary Guard commanders and powerful civilian officials.
Parliament Speaker Mohammad Bagher Ghalibaf, a former IRGC commander who led Iran’s negotiating delegation, has emerged as one of the country’s most powerful surviving political figures.
Banafsheh Zand, an Iranian-American journalist and editor of the Iran So Far Away Substack, said power inside the Islamic Republic has fractured since the death of Ayatollah Ali Khamenei, leaving the Islamic Revolutionary Guard Corps as the country’s dominant force.
“The person who is negotiating with the U.S. is not necessarily someone who is endorsed by the others,” Zand told Fox News Digital.
She described Ghalibaf as one power center competing with figures including IRGC commander-in-chief Ahmad Vahidi, Quds Force commander Esmail Qaani and former Foreign Minister Mohammad Javad Zarif.
Vahidi controls the IRGC’s overall military structure, while Qaani oversees its external operations and relationships with Iran-aligned armed groups across the region. Zarif, by contrast, remains closely identified with the more accommodationist political camp that previously championed negotiations and sanctions relief.
“The hardliners, in terms of their political presence, have also been pushed aside,” Zand said. “So really, it’s the IRGC. And within the IRGC, whoever signs the deal is not necessarily signing on behalf of everybody else. They’re signing on behalf of themselves.”
Her assessment reflects a central problem facing Washington: Iran’s negotiators, political institutions and military commanders may not share the same interpretation of what was agreed — or the same willingness to implement it.
US CLAWS BACK KEY CONCESSION TO IRAN AFTER FRESH ATTACKS ON COMMERCIAL SHIPS IN STRAIT OF HORMUZ
Iran’s Parliament Speaker Mohammad Bagher Qalibaf and Foreign Minister Abbas Araghchi were greeted by Pakistan Foreign Minister Ishaq Dar and Army Chief Field Marshal Gen. Asim Munir upon their arrival at Nur Khan airbase in Rawalpindi, Pakistan, on April 11, 2026. (Pakistan Ministry of Foreign Affairs/AP)
Yet Trump’s declaration does not necessarily mean diplomacy has been permanently abandoned.
Behnam Ben Taleblu, senior director of the Iran program at the Foundation for Defense of Democracies, told Fox News Digital that the clearest evidence would be the restoration of the U.S. blockade, the introduction of additional military forces or a new round of major economic sanctions.
Otherwise, he said, Trump may continue operating in the “gray zone” between negotiations and open war while keeping his options available.
The more difficult question is why Tehran would jeopardize sanctions relief and risk overwhelming American firepower when its military has already been severely degraded.
Ben Taleblu said Iran’s leaders appear to believe escalation is essential to the survival of the Islamic Republic.
“This is a regime that is weaker, but lethal, and less capable, but more confident,” he said. Iran’s leadership believes its adversaries have vulnerable economic and military interests throughout the Gulf, he added, while the regime itself is more willing to accept destruction.
People hold placards with an image of Iran’s new supreme leader Mojtaba Khamenei with late Iranian Supreme Leader Ayatollah Ali Khamenei, during a gathering to support Mojtaba Khamenei, amid the U.S.-Israeli conflict with Iran, in Tehran, Iran, March 9, 2026. (Majid Asgaripour/WANA (West Asia News Agency) Via Reuters)
“Their survival and their military success and their political success runs through more, not less, escalation,” he said.
Lisa Daftari, foreign policy analyst and the editor-in-chief of The Foreign Desk, agrees the escalation is deliberate, aimed at turning regional instability into leverage.
“By targeting commercial shipping and Arab states, the regime is signaling that it can hold global energy flows and America’s regional partners hostage to extract leverage, distract from its domestic crisis, and test U.S. red lines,” Daftari told Fox News Digital.
She said Tehran is betting that Washington and its Arab partners will be unwilling to sustain another war and will ultimately back down first.
“The regime’s core weapon is time,” Daftari said. “By escalating in the Persian Gulf and attacking ships and Arab states, they are creating rolling crises that raise the cost of confronting them while they consolidate power at home.”
Daftari argued that the strategy reflects the Islamic Republic’s longstanding character rather than a temporary response to pressure.
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Firefighters work in the aftermath of Iranian drone attacks, at a location given as Bahrain (Reuters)
“This regime was never designed to be reformed or softened,” she said. “What they are showing us now is exactly who they intend to remain: a hardline, revolutionary regime determined to stay in power.”
But determining how that strategy is translated into action is more complicated. Authority in Tehran appears divided, raising questions about who is directing the escalation and whether the officials negotiating with Washington can commit the broader security establishment.
That division is already visible in the dispute over the Strait of Hormuz.
A Middle Eastern source familiar with the issue told Fox News Digital that Tehran and Washington are operating from fundamentally different readings of Clause five of the memorandum. The publicly released text says Iran will use its “best efforts” to arrange safe commercial passage through the strait without charge for 60 days, while removing military and technical obstacles and conducting demining operations. It does not expressly state that foreign vessels must obtain Iran’s approval or use routes designated by Tehran.
According to the source, Iran interprets that language as giving it responsibility — and therefore authority — to coordinate shipping and determine the routes vessels use during the interim period. Washington’s interpretation is that Iran agreed to lift its maritime blockade and fully reopen the international waterway.
When the two sides have different interpretations of a single page, how do they intend to write a treaty, the source said.
Iran views control over passage through the Strait of Hormuz as one of its last major sources of leverage over the United States, Gulf governments and the global economy, the source said, “That is the heart of the matter.”
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The truck carrying the coffins of the slain Iranian Supreme Leader Ayatollah Ali Khamenei and members of his family makes its way through mourners during the funeral procession toward Azadi Tower in Tehran, Iran, on Monday, July 6, 2026. (Vahid Salemi/AP)
Taken together, the experts’ assessments suggest Tehran is unlikely to face a simple choice between surrendering to Trump’s pressure and returning to negotiations. Ben Taleblu said the regime believes its survival depends on “more, not less, escalation,” while Daftari said it is deliberately “playing out the clock” by creating repeated regional crises. That raises the prospect that, even if Iranian officials return to the table, the IRGC could continue targeting commercial shipping, U.S. interests and American allies to preserve its leverage and strengthen its position inside Iran.
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