Trump calls USMCA “irrelevant” for the US, while automakers warn the pact is vital for American production. Trade tensions continue as the US and Japan strike a deal on auto tariffs, and Canada signals ongoing negotiations ahead of the agreement’s review.
US President Donald Trump said Tuesday that the U.S.-Mexico-Canada trade pact (USMCA) “is irrelevant” for the US, claiming it mainly benefits Canada, which “needs it.” He used the remarks to push for reshoring manufacturing to the United States.
The agreement is critical for major automakers, including Ford, GM, Stellantis, Tesla, Toyota, Honda, Hyundai, and Volkswagen, whose operations rely heavily on supply chains across Mexico and Canada. Industry groups say USMCA boosts efficiency, saves tens of billions annually, and helps US vehicles compete globally.
Stellantis warned that US cars that meet North American content rules still risk losing market share to Asian imports because of Japan’s tariffs, potentially hurting American workers. The trade deal, which replaced NAFTA in 2020, is due for a joint review this year to decide its future.
The US and Japan reached a trade agreement that reduces tariffs on Japanese auto imports to 15%. In exchange, Japan pledged to invest USD 550 billion in the US, covering Boeing aircraft, defence expenditures, and higher imports of agricultural products and rice
Earlier, Canada’s Prime Minister, Mark Carney, stated that trade talks with the US are ongoing, with several outstanding issues expected to be addressed during the upcoming review of the United States-Mexico-Canada Agreement (USMCA).
