Carmakers Warn USMCA Terms Threaten Cheap Models
Foreign carmakers have warned that without adjustments to the US-Mexico-Canada Agreement (USMCA), they may stop selling their cheapest models in the US. According to the Wall Street Journal, the warnings were conveyed directly to advisers to US President Donald Trump.
The concerns center on high tariffs on vehicles and car parts within North America, which are significantly increasing production costs. Without reductions, manufacturers say it will not be economically viable to offer more affordable models.
The automotive sector regards the USMCA as a key framework for regional manufacturing. At the same time, Mexico and Canada are pushing for relief from tariffs imposed by Washington last year, which have affected the entire integrated market.
Political tensions between the US and Canada are also complicating the situation. Negotiations on the future of the agreement are due to conclude by 1 July.