Trade Showdown: Whitmer Warns Against Abandoning USMCA Amid China's Automotive Ascendancy

Michigan Governor Gretchen Whitmer emphasized the importance of extending the USMCA trade deal for U.S. auto production, warning against China's growing influence in the industry. Major automakers urged the U.S. to prevent China's dominance. China's embassy criticized protectionism, advocating for open markets.

In a poignant speech at the Detroit auto show, Michigan Governor Gretchen Whitmer underscored the urgent need for the U.S. to strengthen its trade partnerships with Canada and Mexico via the United States-Mexico-Canada Agreement (USMCA). Whitmer cautioned that any lapse in the agreement could inadvertently bolster China's burgeoning grip on the global automotive sector.

The governor's remarks come amid rising tensions with China, whose government-backed automakers and battery manufacturers are eager to expand into the U.S. market. The Alliance for Automotive Innovation, representing industry giants like General Motors and Ford, has voiced concerns, urging Washington to guard against what it views as a 'clear and present threat' from China.

Contrastingly, the Chinese Embassy in Washington has decried what it sees as protectionism, emphasizing that China's market is open to foreign investment. Whitmer and major automakers argue that maintaining trade alliances is vital for U.S. auto production, highlighting that manufacturing a car requires thousands of parts, often sourced internationally due to practical constraints.

(With inputs from agencies.)