The Canadian Trucking Alliance (CTA) says the U.S. administration’s decision not to immediately approve a multi-year extension of the U.S.-Mexico-Canada Agreement (USMCA) has created uncertainty for cross-border trucking and supply chains.

In a statement on July 2, the alliance said replacing a long-term trade framework with annual reviews introduces instability for carriers making investments in equipment, fleet renewals and customer contracts.

“Yesterday’s decision by the United States to withhold an immediate extension of USMCA injects a deep layer of systemic friction into North American commerce at a time when continental supply chains require stability,” the CTA said in a statement. “By shifting the trade pact from a predictable, long-term framework into a cycle of forced annual reviews, Washington has introduced a distinct structural challenge.”

The alliance said freight carriers depend on long-term policy certainty to justify capital investments and that an annual review process could delay equipment purchases, complicate planning and increase costs throughout the supply chain.

The CTA noted that more than 10 million trucks typically cross the Canada-U.S. border each year, hauling nearly CA$500 billion in two-way merchandise trade. Trucks move roughly two-thirds of Canada’s trade with the United States.

It also warned that pursuing separate bilateral agreements instead of maintaining the trilateral framework could disrupt North American manufacturing, agriculture and freight movement. The alliance said Canada is the top export market for 36 U.S. states and argued that barriers affecting Canadian carriers would also hurt American businesses, workers and consumers.

While USMCA remains legally in force until 2036, the CTA noted the agreement allows any member country to withdraw with six months’ notice, creating additional uncertainty as annual reviews begin.

“Cross-border trucks will continue to roll today, tomorrow morning, and under the exact same customs protocols for the time being,” the CTA said.

“As negotiations unfold, the CTA will be actively engaged at the table alongside our continental partners, fighting to protect border fluidness and providing our members with the realistic perspective and steady advocacy needed to navigate this heightened trading environment.”