The U.S. automotive industry is entering a new phase of uncertainty as the Trump administration said the USMCA trade agreement between the United States, Mexico and Canada will not 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.
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