However, analysts cautioned that full decoupling from China’s automotive industry remains difficult, given North America’s continued dependence on Chinese-sourced motor vehicle components and Mexico’s legacy of export manufacturing plus quick access to the US border.
The Washington-based research and advocacy group Alliance for American Manufacturing has urged the Trump administration not to renew the US-Mexico-Canada Agreement (USMCA), as the three countries launched the pact’s first mandatory six-year review on Wednesday.
“The United States has a critical opportunity to renegotiate the agreement and defend America’s workers,” the alliance said, backed by domestic manufacturers and the United Steelworkers trade union.
“Though China is not a partner in this trade deal, its automakers are working hard to leverage it to infiltrate the US market. A strong USMCA with robust rules of origin would establish a necessary roadblock to Beijing’s US auto market access.”
