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Automakers say certainty on North America trade deal

needed to

boost investments

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US, Canada, Mexico to review USMCA trade deal

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Automakers say deal needed to compete against other

regions

(Adds Honda, other companies supporting in paragraphs 2 and 6)

By David Shepardson

WASHINGTON, Nov 4 (Reuters) - Major automakers including

Tesla, Toyota ( TM ) 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, which also included General Motors ( GM ),

Honda ( HMC ), Hyundai, Rivian, Mazda ( MZDAF )

, Volkswagen and Stellantis ( STLA ), 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 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."

Honda ( HMC ) also urged the Trump administration "to expedite the

USMCA review process and take immediate steps to normalize North

American trade." The Japanese automaker added "with Chinese

firms increasingly seeking to route production through Mexico or

Canada to avoid U.S. tariffs, a united front is far more

effective to combat transshipment from China."

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.

The automaker 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."