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Automakers urge US to extend North America free trade deal
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Automakers urge US to extend North America free trade deal
Nov 4, 2025 2:51 PM

WASHINGTON, Nov 4 (Reuters) - Major automakers,

including General Motors ( GM ), Tesla, Toyota Motor ( TM )

, 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 ( STLA ) 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 ( STLA ) 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 ( TM ) 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."

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