As the review of Canada’s trade deal with the U.S. and Mexico approaches, various U.S. industries are urging the Trump administration to maintain the agreement and refrain from imposing tariffs on imports from Canada and Mexico. Public hearings are set to take place in Washington this week as part of the mandatory assessment of the Canada-U.S.-Mexico Agreement (CUSMA).
Leading players in the U.S. manufacturing, industrial, and retail sectors have submitted endorsements of the agreement’s advantages to the domestic economy ahead of the hearings. While there have been suggestions for amendments among the approximately 1,500 public comments submitted to the Office of the U.S. Trade Representative, major industry groups widely support the three-way agreement.
The National Association of Manufacturers, a significant organization contributing $2.9 trillion US to the nation’s GDP, describes CUSMA as “the most pro-U.S. manufacturing trade agreement in history,” highlighting how it has elevated manufacturing in the U.S. to unprecedented levels and enhanced the industry’s global competitiveness.
Julian Karaguesian, an international trade expert, notes that the majority of submissions favor retaining the agreement and eliminating tariffs as much as possible. Industry groups underscore the importance of Canadian and Mexican supplies to their operations and the significance of these countries’ markets for their businesses.
While some sectors like U.S. steel and dairy express concerns about CUSMA’s impact, praise for the trade deal and the removal of tariffs on Canadian goods comes from a wide range of major industries. The National Association of Home Builders, representing 140,000 members in the residential construction industry, emphasizes the benefits CUSMA has brought to America’s homebuilders and urges the elimination of tariffs on building materials imported from Canada and Mexico.
Automakers such as General Motors and Ford highlight how CUSMA enhances the competitiveness of the U.S. auto industry, with General Motors citing significant investments in North America since the agreement’s enactment. The American Automotive Policy Council emphasizes the substantial savings enabled by CUSMA for its members.
The National Retail Federation and the Consumer Brands Association also express support for renewing CUSMA, emphasizing its benefits to the American economy and consumers. Despite the widespread industry support for the agreement, uncertainties loom over whether the Trump administration, which negotiated CUSMA but has shown reservations in its second term, will maintain it.
The submissions and hearings this week will inform the U.S. government’s preparations for the forthcoming formal review of CUSMA, with potential outcomes ranging from extending the agreement to renegotiating its terms or a country withdrawing from CUSMA entirely. The most probable scenario, as outlined by the Center for Strategic and International Studies, is that at least one country may not agree to an extension during the review, leading to annual reviews that could impact investor confidence and long-term investment.
