President Trump’s United States-Mexico-Canada Agreement (USMCA) has reshaped North American trade, creating regional growth and reinforcing the interconnected nature of our economies. Since 2018, Mexico and Canada have become the United States’ largest trading partners, reducing our reliance on China. It has also leveled the playing field for American manufacturers and led to greater investment in the North American market.
For automakers, the USMCA has become more than just a regulatory framework—it is a catalyst for innovation, investment, and job creation right here in the U.S.
The USMCA’s standardization of cross-border logistics, once fully implemented, will allow for a seamless flow of vehicles and parts and underscores the importance of a strong trade environment. It allows us to leverage the rich resources of our region, strengthening our supply chains and creating certainty and stability for U.S. businesses.
Importantly, our strong trade partnership with Mexico and Canada allows the U.S. to sell goods, including vehicles, made right here on American soil to consumers across North America and worldwide, fueling economic growth and supporting high-quality, good paying manufacturing jobs. In fact, 73% of U.S. auto parts exports and 51% of new vehicle exports go to Canada and Mexico, demonstrating the deep integration of the region’s auto trade.
To put that into perspective, international automakers exported 762,500 U.S.-built vehicles in 2023—all of which relied on North American supply chains.
Key intellectual property provisions and updated digital economy conditions have also helped to protect and incentivize research, development, and innovation. They have allowed the auto industry to confidently invest in new and emerging technologies that ensure we’re developing the safest, most advanced vehicles in the world and the U.S. remains the global automotive leader.
The USMCA also plays an important role in upholding the quality of the North American workforce, which totals over 248 million people. This includes 20 million employees in Canada, 60 million in Mexico, and 168 million in the United States, making it one of the largest pools of skilled labor in the world. North America’s workforce surpasses the European Union and ranks third globally behind China and India, highlighting the ability for our countries to maintain a competitive and dynamic automotive industry.
As we look ahead, preserving the integrity of USMCA is essential. A stable and predictable trade framework allows automakers to innovate, meet consumer demand, and strengthen global competitiveness while keeping costs down for manufacturers and consumers alike. Policymakers must ensure the agreement remains effective and adaptable to industry advancements, recognizing that Canada and Mexico are our top export partners and reinforcing the need for a seamless, well-functioning trade system.
Autos Drive America is committed to advocating for policies that enhance North American trade and support the success of international automakers in the U.S. By working together, we can continue driving economic growth, fostering innovation, and delivering high-quality vehicles to consumers across the continent.
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