North American trade pact review

What happened: The Trump administration has decided not to renew the USMCA trade pact with Canada and Mexico, opting instead for annual reviews. This decision, due on Wednesday, will trigger a yearslong review process or potential expiration of the pact by 2036 if no deal is reached. Meanwhile, JPMorgan Chase CEO Jamie Dimon met with Mexican President Claudia Sheinbaum to discuss the trade agenda as the review approaches.

Market impact: The U.S. automotive industry faces increased uncertainty, with potential disruptions to supply chains and trade dynamics. The U.S. auto industry, which heavily relies on cross-border trade, could face higher tariffs or other barriers if the USMCA review leads to changes or expiration of the pact. Meanwhile, the Bitcoin ETF landscape remains stable, with iShares and VanEck funds maintaining their positions despite slight fee differences.

What to watch next: The evolution of the USMCA review process will be crucial, with key catalysts including any announcements from the U.S. administration regarding their negotiation strategy, as well as reactions from Canadian and Mexican officials. Additionally, the next earnings reports from major U.S. automakers, such as General Motors and Ford, will provide insights into how the industry is navigating this new phase of uncertainty.