Trump Questions Need for USMCA; Mexico Confirms Progress

President Donald Trump recently stated that the United States does not need the USMCA, while noting that Canada remains eager to maintain the trade agreement. “It does not provide any real advantage; it is irrelevant,” Trump said. “Canada would love it. They want it. They need it. The issue is we do not need their products. We do not need cars made in Canada or Mexico. We want to bring production here, and that is what is happening.” His remarks, made during a visit to a Ford factory in Dearborn, Michigan, reflect ongoing debates over North American trade.

Al Jazeera reported that Detroit’s automakers such as Ford, General Motors, and Stellantis, continue to rely heavily on supply chains spanning Mexico and Canada, producing hundreds of thousands of vehicles annually in both countries. In November, major automakers including Tesla, Toyota, and Ford urged the Trump administration to extend the USMCA, emphasizing its importance for US auto production.

The American Automotive Policy Council, highlighted that the USMCA enables US-based automakers to remain globally competitive through regional integration, generating efficiency gains and tens of billions of dollars in annual savings. “Our supply chains run across all three countries. It is not straightforward, it is highly complex. North American integration is a major strength,” said General Motors president Mark Reuss.

In Mexico, despite Trump’s comments, President Claudia Sheinbaum expressed confidence that the USMCA review process would move forward positively following her phone conversation with Trump on Jan. 12. Sheinbaum emphasized the importance of a stable and predictable trading environment to support Mexico’s economic growth and regional integration.

“Our economies are highly interconnected and deeply integrated: Canada, the United States, and Mexico, but let’s focus on Mexico and the United States. The strongest supporters of the agreement are US business leaders… recently, an American company purchased a transformer company in Mexico for a very significant amount, which shows confidence in the country. So, I am not convinced that the trade agreement with the United States will continue as is.”

This is not the first time the United States has questioned the value of the USMCA. Trump has previously suggested dismantling the trilateral agreement in favor of three separate bilateral deals: Mexico–United States, Mexico–Canada, and United States–Canada. In 2025, US Trade Representative Jamieson Greer also indicated that the administration might consider withdrawing from or renegotiating the agreement, including pursuing separate negotiations with Mexico and Canada.

Despite these statements, most trade analysts consider such a scenario unlikely. Mexico and Canada together account for roughly 73% of US trade-related GDP, creating strong incentives to maintain a unified agreement. A cohesive USMCA framework encourages alignment with US trade regulations, strengthens supply chains, and preserves North America as a competitive hub for manufacturing, exports, and regional economic integration.

Experts note that Mexico maintains strategic advantages in trade with the United States. Its geographic proximity and integration into regional supply chains make it a critical partner in North American production networks.

USMCA, which replaced NAFTA in 2020, includes a review provision six years after its entry into force. This process allows member countries to assess the agreement’s performance and determine its future. Signatories can choose to extend the agreement for an additional 16-year term until 2042, maintain it with annual reviews, or let it expire in 2036 if consensus is not reached.