A coalition of auto trade groups is urging President Donald Trump to preserve the free trade agreement with Mexico and Canada as the July 1 deadline to renew the pact approaches.
The details: The request from seven organizations representing automakers, dealers, and parts suppliers was outlined in a letter sent to U.S. Trade Representative Jamieson Greer, encouraging the administration to keep the U.S.-Mexico-Canada Agreement intact, Reuters reported.
In the letter, the groups said a renewed USMCA “will help ensure that the United States remains a globally competitive production base at a time of rapid technological change and intensifying international competition.”
The appeal is one of several made by industry stakeholders in recent months amid concerns that major changes to the agreement could disrupt North American vehicle production.
Why it matters: Uncertainty surrounding USMCA renewal could affect vehicle pricing, inventory flow, and production stability—particularly for brands heavily reliant on North American manufacturing and cross-border supply chains.
Between the lines: Early discussions around the trade pact have produced mixed signals, with Mexico appearing to gain more traction with the Trump administration than Canada.
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The U.S. and Mexico have agreed to launch formal bilateral negotiations during the week of May 25 in Mexico City, according to Reuters.
U.S.-Canada talks have remained strained as Prime Minister Mark Carney pushes to reduce Canada’s economic dependence on the U.S., further escalating tensions with the administration.
What they’re saying: "The tariffs on steel, the tariffs on aluminum, the tariffs on automobiles...those are violations of our trade deal," said Carney, per RTL Today.
Bottom line: The push to preserve USMCA underscores how critical trade stability remains to the auto industry. For dealers, the concern is whether prolonged uncertainty (or major changes to the agreement) ultimately leads to higher costs, tighter supply, or shifts in OEM production strategy.
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