Major Automakers Urge Trump Administration to Extend Crucial Trade Deal
By David Shepardson
WASHINGTON (Reuters) – Major automakers, including General Motors, Tesla, Toyota Motor, Hyundai, Volkswagen, and Ford, have come together to urge the Trump administration to extend a North American free trade deal they deem crucial to American auto production.
The automakers expressed their views in filings with the U.S. Trade Representative’s Office ahead of the 2026 formal review of the United States-Mexico-Canada Agreement. Each company suggested changes they believe are necessary.
The American Automotive Policy Council, which represents the Detroit Three automakers, emphasized that USMCA “enables automakers operating in the U.S. to compete globally through regional integration, leading to efficiency gains” and generating “tens of billions of dollars in annual savings.”
Investments on Hold
Hyundai Motor Group stated in a filing that the uncertainty surrounding USMCA was hindering investment decisions.
“Early confirmation of USMCA’s extension would immediately unlock over $20 billion in new American investments,” the automaker informed the USTR. “Every month of ambiguity slows job creation, site selection, and technology development.”
Tesla emphasized the need to “continue this forward momentum and strengthen U.S. competitiveness by supporting the continuation of USMCA as a trilateral agreement.”
The company recommended the adoption of an industry-accepted North American Charging Standard as the single standard for electric light-duty vehicle trade and aligning automotive safety standards across the three countries.
Last month, President Donald Trump granted tariff relief for imported parts used in U.S. auto and engine production.
Stellantis proposed that vehicles made outside North America should adhere to rules on component origin to match those imposed by the USMCA or eliminate tariffs on Mexico and Canada for USMCA-compliant passenger vehicles.
Toyota stressed the importance of allowing duty-free cross-border trade for automobiles and auto parts that meet the content and labor rules outlined in the USMCA.
Ford suggested that once an improved USMCA is in place, national security tariffs should only apply to countries outside of North America to uphold the effectiveness of the agreement and the competitiveness of the North American auto industry.
(Reporting by David Shepardson; Editing by Rod Nickel)
