By David Shepardson
WASHINGTON (Reuters) -Major automakers, including General Motors, Tesla, Toyota Motor, Hyundai, Volkswagen 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 made the comments in filings with the U.S. 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 U.S. to compete globally through regional integration, which delivers efficiency gains” and accounts “for tens of billions of dollars in annual savings.”
INVESTMENTS ON HOLD
Hyundai Motor Group 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.”
Tesla said “to continue this forward momentum and strengthen U.S. 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 U.S. 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.
Stellantis added that under 15% tariffs with Japan, U.S. 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.”
(Reporting by David Shepardson; Editing by Rod Nickel)
