President Donald Trump downplayed the importance of the United States-Mexico-Canada Agreement (USMCA) during a visit to Michigan on Tuesday, calling it “irrelevant” to the United States and suggesting Canada benefits more from the pact.
“There’s no real advantage to it; it’s irrelevant,” Trump said while touring a Ford factory in Dearborn. “Canada would love it. Canada wants it. They need it.”
The trade agreement, which replaced the North American Free Trade Agreement (NAFTA) in 2020, is set for a joint review this year to determine whether it should be extended or renegotiated. The deal was negotiated during Trump’s first term and includes provisions for evaluating its impact every six years.
Major automakers, including Ford, General Motors, Toyota, Tesla, and Stellantis, have urged the administration to extend the agreement. They argue that USMCA is critical for maintaining regional integration that supports automotive supply chains across the three countries.
The American Automotive Policy Council, which represents Ford, GM, and Stellantis, said the pact enables U.S.-based automakers to achieve efficiency gains through regional production and accounts for billions of dollars in annual savings.
Mark Reuss, president of General Motors, emphasized the complexity of the supply chain, stating, “Our supply chains go all the way through all three countries. It’s not simple. It’s very complex. The whole North American piece of that is a big strength.”
Trump reiterated his call to bring manufacturing back to the United States. “The problem is, we don’t need their product. You know, we don’t need cars made in Canada. We don’t need cars made in Mexico. We want to take them here. And that’s what’s happening,” he said.
Stellantis said in November that without USMCA, U.S. vehicles complying with North American content rules could face competitive disadvantages against Asian imports due to current tariffs.
On Wall Street Tuesday, Ford fell 0.25% from the market open, Stellantis declined 2.9%, and General Motors rose 0.6%.
