By Micah Jonah
January 14, 2026
United States President, Donald Trump has described the United States-Mexico-Canada Agreement, USMCA as irrelevant to the US economy, reigniting uncertainty around the future of North American trade as major automakers warn that the pact remains critical to US auto production.
Speaking on Tuesday during a visit to Detroit Michigan, Trump said the trade agreement offers no real advantage to the United States and suggested that Canada benefits more from the deal.
“There’s no real advantage to it it’s irrelevant,” Trump said. “Canada would love it Canada wants it They need it.”
The remarks come as USMCA faces a mandatory six year joint review in 2026 that could determine whether the agreement expires or is renegotiated. The pact replaced the North American Free Trade Agreement in 2020 and was negotiated during Trump’s first term.
Detroit’s big three automakers Ford General Motors and Stellantis rely heavily on integrated supply chains that stretch across the United States Canada and Mexico. Hundreds of thousands of vehicles are produced annually in all three countries with critical components crossing borders multiple times before final assembly.
Major car manufacturers including Tesla, Toyota and Ford warned in November that allowing the USMCA to lapse would disrupt production, weaken the competitiveness of US made vehicles. Industry leaders argue that regional integration under the agreement delivers efficiency gains and saves tens of billions of dollars annually.
The American Automotive Policy Council which represents the Detroit Three said the USMCA enables automakers operating in the US to compete globally through a deeply connected North American production network.
General Motors President, Mark Reuss emphasized the complexity of modern auto manufacturing while speaking at an event in Detroit. He noted that supply chains now span all three countries and described the North American system as a major industrial strength rather than a weakness.
Trump, however maintained that the US does not need vehicles made in Canada or Mexico, said his administration wants manufacturing fully returned to American soil.
“We don’t need cars made in Canada We don’t need cars made in Mexico We want to take them here and that’s what’s happening,” he said during a tour of a Ford factory in Dearborn Michigan.
Market reaction to Trump’s comments was mixed. Shares of Ford slipped slightly while Stellantis fell sharply in early trading. General Motors shares posted modest gains.
Stellantis has previously warned that under current tariff structures US vehicles complying with North American content rules could continue to lose market share to Asian imports placing American automotive jobs at risk.
As the review deadline approaches pressure is mounting on the Trump administration to clarify its position. While the president signals a hardline stance on trade automakers caution that abandoning the USMCA could weaken US manufacturing rather than strengthen it.
The fate of the agreement is expected to shape the future of the North American auto industry and determine whether regional cooperation or economic nationalism will define US trade policy in the years ahead.
