Industry groups warn that failing to extend the US-Mexico-Canada Agreement could disrupt $1.5T in annual automotive trade flows.
The American Automotive Policy Council and allied trade groups formally asked the White House to extend the USMCA beyond its 2026 review clause. The pact governs $1.5 trillion in annual North American automotive trade, including duty-free movement of parts and vehicles.
USMCA replaced NAFTA in 2020 and introduced stricter rules of origin, requiring 75 % regional content for vehicles to qualify for zero tariffs. Analysts note the review clause could trigger renegotiation or termination with six months’ notice.
No immediate market reaction was reported, though sector futures edged higher on the news.