US Targets Interim North America Trade Pacts

The United States and Jordan signed the U.S.-Jordan Agreement on Reciprocal Trade, a landmark deal aimed at deepening economic ties and strengthening supply chain cooperation. U.S. Trade Representative Jamieson Greer and Jordanian Industry, Trade, and Supply Minister Yarub Qudah inked the accord, which preserves Jordan’s duty-free market access for nearly all U.S. exports. Jordan pledged to bolster its trade framework by enforcing environmental rules, strengthening labor protection, improving intellectual property rights, ensuring fair practices, and streamlining customs procedures. The pact also commits Jordan to removing non-tariff barriers and expanding market access for U.S. goods, including farm products and motor vehicles. Beyond trade, both countries vowed to reinforce economic and security cooperation by coordinating on investment screening, export controls, combating duty evasion, and countering non-market policies from third countries.

U.S. Trade Representative Jamieson Greer told the Senate Finance Committee that he aims to secure interim trade arrangements with Canada and Mexico by year-end, while deferring more contentious revisions to the U.S.-Mexico-Canada Agreement until 2027. Greer said complex issues, including stricter automotive rules of origin, labor standards, and environmental regulations, will require extended consultation “including with Congress in the following year.” He stressed the U.S. is “moving with all due speed” and intends to present options to President Donald Trump, Mexican President Claudia Sheinbaum, and Canadian Prime Minister Mark Carney before December, though he offered no details on the scope of potential deals.

The US trade deficit widened sharply to $77.6 billion in May 2026 from a revised $54.6 billion in April, broadly in line with market expectations of a $78.5 billion shortfall. The gap was the largest since March 2025, as imports climbed 3.3% to $395.3 billion, their highest level in more than a year. The increase was driven primarily by higher purchases of consumer goods, particularly pharmaceutical preparations and cell phones, as well as crude oil and passenger cars. Meanwhile, exports fell 3.2% to $317.7 billion, weighed down by lower shipments of nonmonetary gold and other precious metals, computers and computer accessories, and consumer goods, particularly pharmaceutical preparations. May's trade data suggests net exports will weigh more heavily on second-quarter GDP than in the first. Meanwhile, ongoing trade policy uncertainty persists as the Trump administration pursues alternative tariff measures and shifts to annual trade reviews with Canada and Mexico.