Getting automakers to come to a consensus on the best approach to renewing the United States-Mexico-Canada Agreement (USMCA) could prove tougher than expected.
The details: An analysis by The Logic reveals that while most major automakers agree on the importance of the USMCA, 53 submissions from car companies show differing views on key aspects of the agreement, which is scheduled to be reviewed in July.
International automakers in the United States are advocating for a “preserve and perfect” approach to the review (and no new surprises).
The Detroit Three are advocating for the removal of separate national-security auto tariffs, arguing those measures (and side deals that reduce duties for some countries, undermine Canada/Mexico vehicles that may have higher U.S. content.
Heavy truck makers and suppliers urge maintaining separate tariffs on medium/ heavy-duty vehicles (imposed on national security grounds), arguing that the current USMCA deal treats vehicle categories unevenly.
What they’re saying: “The USMCA, specifically, integrated North American industrial footprints and preferential tariff treatment, are critical to supporting these investments and to ensuring that U.S. automakers can compete globally.” Omar Vargas, the vice-president and head of global public policy for GM, wrote in his submission (via The Logic).
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Why it matters: A messy renewal process raises the risk of tariff whiplash and added compliance costs; factors that can quickly ripple into vehicle pricing, allocations, and cross-border supply chains. Uncertainty also complicates used-vehicle valuations and sourcing, especially if policy changes disrupt new-vehicle supply or shift OEM incentive strategies.
Between the lines: The differing points of view on various aspects of USMCA add to looming concerns about the fate of the agreement overall.
Donald Trump has said he might consider letting the USMCA expire, calling the agreement “irrelevant," and saying that it's more beneficial to Canada.
A recent move by Canadian Prime Minister Mark Carney to cut Chinese EV tariffs from 100% to 6.1% has intensified tensions with the Trump administration.
Big picture: Automakers are no longer a unified bloc, and that fragmentation could increase the odds of a drawn‑out, politically charged renegotiation that bleeds directly into pricing, product planning, and capital allocation across North America.
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