U.S. Automotive Industry Urges Trump to Extend USMCA

The largest global automakers operating in the United States urged the Trump administration to extend the North American free trade agreement, as they consider it crucial for the production of light vehicles in that country.

These calls were made separately through statements submitted to the Office of the U.S. Trade Representative (USTR) during the consultation phase prior to the review of the USMCA, as it is known in Mexico, scheduled for next year.

Among the companies that documented their positions to the agency are Ford, General Motors, Hyundai, Honda, Rivian, Mazda, Stellantis, Tesla, Toyota, and Volkswagen, according to a report by Reuters. However, all suggested changes.

The American Automotive Policy Council (AAPC), an organization that brings together Detroit's Big Three, said that the USMCA allows assembly operations in the United States to compete globally through regional integration, which generates efficiency gains and represents “tens of billions of dollars in annual savings.”

Hyundai, for its part, highlighted in its statement the difficulties of planning investments and making decisions given the uncertainty surrounding the trade agreement.

The Korean firm said that early confirmation of the agreement's extension would unlock more than $20 billion in investments in the United States on its part.

Honda, on the other hand, highlighted the “immediate” need to normalize trade in North America in order to jointly address the growing threat posed by China's automotive industry.

Tesla, in addition to assuring that the agreement will strengthen U.S. competitiveness, called for the adoption of its NCAS (North American Charging Standard) connection system as the norm in all three countries, as well as the alignment of safety standards.