President Donald Trump said the U.S.-Mexico-Canada trade deal is not relevant to the United States, but Canada wants it, as he pushed for companies to bring manufacturing back to U.S. soil.
“It has no real advantage, it’s irrelevant,” Trump said. “Canada would love it. Canada wants it. It needs it.”
The Detroit Three (Ford, General Motors and Stellantis) rely heavily on supply chains that include significant parts production in Mexico and Canada, and all three produce hundreds of thousands of vehicles annually in both countries.
Major automakers including Tesla, Toyota and Ford in November urged the Trump administration to extend the USMCA, saying it is crucial for American auto production.
The manufacturers claimed that USMCA “enables US automakers to compete globally through regional integration, resulting in efficiency gains” and represents “tens of billions of dollars in annual savings.”
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Mark Reuss, president of General Motors, said at an event Tuesday: “Our supply chains span all three countries. It’s not simple. It’s very complex. The North American component is a great strength.”
Trump made the comments while visiting a Ford factory in Dearborn, Michigan, ahead of a speech on the economy in Detroit.
“The problem is we don’t need your product. We don’t need cars made in Canada. We don’t need cars made in Mexico. We want to bring them here. And that’s what’s happening,” he said.
Stellantis said in November that with 15% tariffs with Japan, U.S. vehicles that meet North American content standards “will continue to lose market share to Asian imports, to the detriment of American auto workers.”
The USMCA will be reviewed this year to decide whether to let it expire or reach another agreement.
The trade pact, which replaced the North American Free Trade Agreement in 2020 and was negotiated during Trump’s first term as president, requires the three countries to conduct a joint review after six years.
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