U.S. auto industry faces more uncertainty without extension of USMCA trade deal

The U.S. automotive industry is entering a new phase of uncertainty as the USMCA trade agreement between the United States, Mexico and Canada is not expected to be extended by Wednesday, triggering what could be a yearslong review process or an expiration of the pact if no deal is reached by 2036.

The United States-Mexico-Canada Agreement, which replaced the North American Free Trade Agreement, was established during President Donald Trump's first term in 2020, but the administration has soured on the deal that governs roughly $2 trillion annually in goods and services between the three countries.

The auto industry represented about 18% of America's trading with its neighboring countries last year, according to industry data, making it one of the key sectors in the discussions. Automakers and others watching the talks are concerned that reopening the deal could create additional trade uncertainty that leads to lower investments and fewer jobs.

"If we let this go on for a very long time, it's very painful for everyone," said Diego Marroquín Bitar, a fellow at the Washington, D.C.-based think tank Center for Strategic and International Studies. "That's the last thing that the regi

Fuente original: CNBC Top News (https://www.cnbc.com/2026/07/01/automakers-usmca-trade.html)