Automakers defend north American integration as Canada weighs how to protect jobs and investment
US President Donald Trump has dismissed North America’s trade pact as “irrelevant,” saying the Canada-US-Mexico Agreement (CUSMA) offers “no real advantage” to the United States.
He added that “Canada would love it. Canada wants it. They need it.”
According to BNN Bloomberg, Trump made the remarks while touring Ford’s truck plant in Dearborn, Mich., where he also declared, “we don’t need cars made in Canada, we don’t need cars made in Mexico, we want to make them here.”
His comments come as CUSMA enters a mandatory review that could extend the pact, overhaul it or allow it to fade out, even as automakers warn that the integrated North American supply chains supporting thousands of Canadian manufacturing jobs and long-term capital investment remain critical.
BNN Bloomberg reports that the three partners face three options in July: renew CUSMA for another 16 years, withdraw entirely, or choose neither and leave its future uncertain.
CBC News notes that the agreement, which replaced NAFTA and was negotiated during Trump’s first term, includes a six-year joint review clause that now comes due.
The auto sector, which anchors a major slice of Canada’s industrial base and supports pension and benefits plans through long-term employment, is pushing in the opposite direction.
Reuters said that the Detroit Three and major global automakers — including Tesla, Toyota, Honda, Hyundai, Volkswagen and Stellantis — urged the Trump administration in November to extend the deal, calling it crucial to US auto production.
The American Automotive Policy Council, which represents the Detroit Three, said CUSMA “enables automakers operating in the US to compete globally through regional integration, which delivers efficiency gains” and generates “tens of billions of dollars in annual savings.”
According to CBC News, the Detroit Three depend on supply chains that run through Canada and Mexico, and all three assemble hundreds of thousands of vehicles each year in both countries.
Mark Reuss, president of General Motors, said “our supply chains go all the way through all three countries. It’s not simple. It’s very complex,” and described the “whole North American piece” as “a big strength.”
At the same time, trade frictions outside North America are shaping the competitive landscape.
Reuters reported that Stellantis warned that, under 15 percent tariffs with Japan, US vehicles that meet North American content rules “will continue to lose market share to Asian imports, to the detriment of American automotive workers.”
That tension sits in the background as policy-makers decide whether to keep or dilute the framework that currently supports regional integration.
Trump’s approach to trade remains aggressive but selective.
BNN Bloomberg reports that his administration has imposed broad tariffs on US trading partners while carving out exceptions for autos, including extended reduced import duties on foreign-made auto parts through 2030.
During the Ford visit, Trump highlighted tariffs on vehicles imported from China and expressed confidence he would prevail at the US Supreme Court, which is reviewing the legality of his tariff measures.
On the Canadian side, Ottawa is signalling it will defend domestic interests but has not set out detailed red lines.
CBC News reported that Canada-US Trade Minister Dominic LeBlanc will “soon begin discussions” with his US and Mexican counterparts as part of the joint review.
His office told CBC News he is meeting representatives from key sectors of the Canadian economy and labour unions to gather input, and said “the interests of Canada’s workers and businesses will always be front and centre in our discussions with our CUSMA partners.”
Provincial voices are already framing Trump’s rhetoric as part of a familiar negotiation pattern.
David Paterson, Ontario’s trade representative in Washington, told CTV that Trump’s tone is expected as talks approach; CBC News reported him saying it is “fairly common” for a US president to begin from “a position of stated dominance and the like.”
Some commentators argue Canada should treat Trump’s comments as a prompt to diversify.
According to CBC News, former Liberal strategist Amanda Alvaro told CBC’s Power & Politics that “nobody can predict what will happen with Trump” or with the “renegotiation of CUSMA,” and suggested Canada should continue broadening trade relationships beyond the US
