Automakers urge US to extend North America free trade deal

The automakers, which also included General Motors, Honda, Hyundai, Rivian, Mazda, Volkswagen and Stellantis, made the comments in filings with the U.S. Trade Representative's Office ahead of the 2026 formal review of the United States-Mexico-Canada Agreement. All suggested changes.

The American Automotive Policy Council, representing the Detroit Three automakers, said USMCA "enables automakers operating in the U.S. to compete globally through regional integration, which delivers efficiency gains" and accounts "for tens of billions of dollars in annual savings."

INVESTMENTS ON HOLD

Hyundai said in a filing that uncertainty about USMCA was delaying investment decisions.

"Early confirmation of USMCA's extension would immediately unlock over $20 billion in new American investments," the automaker told the USTR. "Every month of ambiguity slows job creation, site selection and technology development."

Honda also urged the Trump administration "to expedite the USMCA review process and take immediate steps to normalize North American trade." The Japanese automaker added "with Chinese firms increasingly seeking to route production through Mexico or Canada to avoid U.S. tariffs, a united front is far more effective to combat transshipment from China."

Tesla said "to continue this forward momentum and strengthen U.S. competitiveness, the United States should support the continuation of USMCA as a trilateral agreement."

The company recommended the three countries adopt an industry-accepted North American Charging Standard as the single standard for electric light-duty vehicle trade and align automotive safety standards.

Last month, President Donald Trump approved tariff relief for imported parts used for U.S. auto and engine production.

Stellantis said vehicles made outside North America should follow rules on component origin to "mirror or effectively match those imposed by the USMCA" or drop tariffs on Mexico and Canada USMCA-compliant passenger vehicles.

The automaker added that under 15% tariffs with Japan, U.S. vehicles complying with North American content rules "will continue to lose market share to Asian imports, to the detriment of American automotive workers."

Toyota said "it is crucial that the USMCA continues to allow duty-free cross-border trade for automobiles and auto parts" that comply with the trade deal content and labor rules.