Automakers Rally Support for USMCA Extension Amid Economic Uncertainty

Major automakers, including General Motors and Tesla, have urged the Trump administration to extend the USMCA deal, viewing it as vital for American auto production. The industry warns that investment delays and market uncertainty loom if the agreement isn't upheld, potentially impacting jobs and technological advancements.

Major automakers, such as General Motors, Tesla, Toyota, Hyundai, Volkswagen, and Ford, have collectively urged the Trump administration to extend the United States-Mexico-Canada Agreement (USMCA). This trade deal is deemed crucial for American auto production, according to a joint filing with the U.S. Trade Representative's Office ahead of its formal review in 2026.

The industry stresses that regional integration under USMCA facilitates global competition and results in substantial annual savings. However, investment decisions are being hindered by uncertainty over the treaty's future, as highlighted by Hyundai Motor Group, which has delayed $20 billion in potential American investments.

Tesla emphasized the need for a consistent North American Charging Standard and cautioned against potential job losses if the agreement falters. Meanwhile, Toyota and Ford advocate for preserving duty-free cross-border trade, which they argue is vital for competitiveness and market stability.

(With inputs from agencies.)