Overview
- Japan’s auto group JAMA asked USTR to preserve existing provisions, citing $87 billion invested across the region and ongoing electrification projects tied to clear, coordinated rules.
- U.S. manufacturers represented by the AAPC urged against lifting regional or labor content thresholds to 75%, warning some producers would instead pay the 2.5% MFN tariff and reduce participation in preferential trade.
- AAPC also flagged that Section 232 duties and recent reciprocal trade arrangements complicate the preference USMCA was designed to provide to North American producers.
- Dealer group AIADA warned that altering the framework risks worsening affordability, noting average new-vehicle prices above $50,000 and research estimating about $4,600 in added costs per vehicle by 2027.
- The UAW called for stronger enforcement and a North American sectoral wage floor, pointing to an expert board’s finding that Mexico is not in compliance with labor obligations, while USTR deliberations continue with no changes adopted.