Automakers urge US to extend North America free trade deal

Major automakers including Tesla, Toyota and Ford, urged the Trump administration on Tuesday to extend a North American free trade deal they call crucial to American auto production.

The automakers, which also included General Motors, Honda, Hyundai, Rivian, Mazda , Volkswagen and Stellantis, made the comments in filings with the US Trade Representative’s Office ahead of the 2026 formal review of the United States-Mexico-Canada Agreement. All suggested changes.

The American Automotive Policy Council, representing the Detroit Three automakers, said USMCA “enables automakers operating in the US to compete globally through regional integration, which delivers efficiency gains” and accounts “for tens of billions of dollars in annual savings.”Hyundai said in a filing that uncertainty about USMCA was delaying investment decisions.”Early confirmation of USMCA’s extension would immediately unlock over $20 billion in new American investments,” the automaker told the USTR. “Every month of ambiguity slows job creation, site selection and technology development.”

Honda also urged the Trump administration “to expedite the USMCA review process and take immediate steps to normalize North American trade.” The Japanese automaker added “with Chinese firms increasingly seeking to route production through Mexico or Canada to avoid US tariffs, a united front is far more effective to combat transshipment from China.”

Tesla said “to continue this forward momentum and strengthen US competitiveness, the United States should support the continuation of USMCA as a trilateral agreement.”

The company recommended the three countries adopt an industry-accepted North American Charging Standard as the single standard for electric light-duty vehicle trade and align automotive safety standards.

Last month, President Donald Trump approved tariff relief for imported parts used for US auto and engine production.

Stellantis said vehicles made outside North America should follow rules on component origin to “mirror or effectively match those imposed by the USMCA” or drop tariffs on Mexico and Canada USMCA-compliant passenger vehicles.

The automaker added that under 15 per cent tariffs with Japan, US vehicles complying with North American content rules “will continue to lose market share to Asian imports, to the detriment of American automotive workers.”Toyota said “it is crucial that the USMCA continues to allow duty-free cross-border trade for automobiles and auto parts” that comply with the trade deal content and labor rules.

Ford said after an improved USMCA is in place, all national security tariffs “should only apply to countries outside of North America to preserve the effectiveness of USMCA and the competitiveness of the North American auto industry.”

Join the community of 2M+ industry professionals.

Subscribe to Newsletter to get latest insights & analysis in your inbox.

All about ETAuto industry right on your smartphone!

• Download the ETAuto App and get the Realtime updates and Save your favourite articles.