US Trade Representative Jamieson Greer made it clear on May 26 that tariffs on imports from Canada and Mexico aren’t going anywhere. The reason, in his words: a “giant trade deficit” that the administration views as unacceptable.

The announcement lands roughly six weeks before the USMCA joint review is scheduled to kick off in July 2026.

What Greer actually said

Greer’s core message was straightforward. As long as the US runs a substantial trade deficit with its North American neighbors, the tariffs stay in place. Indefinitely.

He also indicated the US would be willing to discuss preferential tariff treatment for Canada and Mexico, but only if they cooperate on managing external tariffs on goods flowing in from third countries, particularly China and Vietnam.

The broader goal, according to Greer, isn’t just deficit reduction. The administration wants the upcoming USMCA review to rewrite rules around origin requirements and dispute settlement mechanisms, all in service of boosting US manufacturing content.

Canada appears to be the primary target of Greer’s frustration. While both countries were named, his remarks specifically flagged “significant trade issues” with Canada, suggesting Ottawa may face the steeper climb in negotiations.

The legal and policy backdrop

These tariffs on Mexican and Canadian goods were originally imposed in 2025, using authorities that included the International Emergency Economic Powers Act, or IEEPA, a law traditionally reserved for national security emergencies.

That approach hit a wall in February 2026, when the Supreme Court issued a ruling that placed limitations on using IEEPA to impose tariffs. The decision didn’t eliminate the tariffs entirely, but it forced the administration to adjust its legal footing.

Greer has been meeting with counterparts from both Canada and Mexico to push for reforms. The joint review, which both parties agreed to as part of the original deal’s built-in sunset mechanism, now looks less like a formality and more like a genuine renegotiation.

What this means for markets and crypto investors

When the original tariffs were imposed in 2025, risk assets broadly experienced short-term volatility. Crypto, which increasingly trades in correlation with macro sentiment, wasn’t immune.

For now, the market hasn’t shown a dramatic reaction to Greer’s statements. The real test comes in July, when abstract policy positions become concrete negotiating demands. Traders positioning around the USMCA review should watch for signals on whether Canada and Mexico are willing to accept the US framework for third-country tariff cooperation.