Trump’s much-touted new version of NAFTA, the US-Mexico-Canada Agreement (USMCA) went into effect Wednesday, but don’t expect any Earth-shattering immediate impacts from the trade deal.
As Politico points out, the agreement “is far from an assured success.” Many of the components of the pact have yet to be worked out, and it is far from certain that Mexico will be able to uphold much of its end of the bargain, particularly when it comes to labor conditions and pay.
With US consumer spending near record lows due to the continuing coronavirus pandemic, any major effects from the agreement will barely be noticable. And with some major issues–like tariffs on Canadian aluminum and Mexican steel exports–still unresolved, any potential economic impact could be years away, assuming the USMCA remains in place.