Texas Border Business
By Roberto Hugo González / Texas Border Business
Jorge Torres, President and Founder of Interlink Trade Services and a U.S. Customs Broker, said the decision by the United States not to extend the United States-Mexico-Canada Agreement (USMCA) in 2026 does not immediately change how companies conduct trade but does extend the period of uncertainty for businesses operating across North America.
According to Torres, the USMCA includes a sunset clause requiring the three member countries to meet in 2026 to review and extend the agreement for another 16 years. If the agreement is not extended at that time, it provides for annual reviews until all three countries agree to an extension. If no agreement is reached by 2036, the USMCA expires. Torres noted that Mexico and Canada submitted letters supporting the extension, but the United States did not. “This situation does not change things immediately; we knew that this could happen as per the USMCA provisions and as on how the Trump trade policy since he took office in 2025,” he said.
Torres said companies have already experienced uncertainty because of tariff policies implemented by the Trump administration since 2025. He said that while the United States’ decision not to extend the agreement is disappointing, “it does not mean that the USMCA is dead. It will go through more scrutiny and a longer review process. Therefore, the current uncertainty will continue.”
He explained that because the agreement remains in force unless one of the three countries withdraws, companies are expected to continue operating under the current framework. “Companies have adapted to this uncertainty well and they are very resilient. I do not see much change in what companies are currently doing right now in their supply chains,” Torres said.
Regarding future annual reviews, Torres said the Trump administration’s objective is clear. “Bring production to the U.S., stop importing from China and any other country that he considers has been unfair to the U.S. He wants Canada and Mexico to support him in this effort and implement stricter trade policies with these countries for them to continue being fair partners.”
Torres said the industries most likely to be affected by future USMCA reviews are automotive, metallurgical, textile, and electrical and electronics manufacturing. He said future negotiations are expected to focus on stricter rules of origin and higher regional value content requirements, including greater U.S. content.
For businesses in the Rio Grande Valley and northern Mexico, Torres recommended maintaining strong trade compliance programs and clear communication throughout their organizations. “Companies need to be well informed and have strong trade compliance processes and very fluid communication internally and externally to adapt to any potential change,” he said. He added that organizations such as Rioplex and COSTEP have helped companies understand evolving trade policies and prepare for potential changes.
Torres acknowledged that some companies may reconsider investments amid continued uncertainty, but said many businesses recognize the long-term direction of North American manufacturing. “If non-USMCA companies want to be a trade partner with the U.S. (and Mexico and Canada for all practical purposes), they will have to establish operations in the region,” he said. He added that South Texas is positioned to benefit from that trend and cited Valeo’s investment in McAllen as an example of positive results already taking place.
Looking ahead, Torres encouraged business leaders to focus on preparation rather than uncertainty. “I am firm believer that uncertainty and crises always bring opportunities,” he said. “My message to companies is to prepare strategically and be ready to adapt to any changes coming.” He added that the Rio Grande Valley is well positioned to help companies respond to changing trade policies and said those changes can support future economic growth and prosperity in the region.
As President and Founder of Interlink Trade Services, Torres has more than three decades of experience in U.S.-Mexico trade, customs brokerage, logistics, and trade compliance. Under his leadership, the company provides customs brokerage, freight, and trade compliance services to manufacturers, importers, and exporters operating throughout North America.
