The USMCA agreement, on which the “Big Three” manufacturers depend, is “irrelevant”, Trump claims

President Donald Trump said on Tuesday that the USMCA trade agreement between the United States, Mexico and Canada (USMCA) is not relevant to the US, but that Canada “wants it”, as he pressured companies to bring production back to US soil, Reuters reports.

“There's no real advantage, it's irrelevant,” Trump said. “Canada would be delighted. Canada wants him. They need him,” the White House leader added.

Detroit's three major auto companies, known as the “Big Three” (General Motors – GM, Ford Motor Company and Chrysler – now part of the Stellantis Group) depend heavily on supply chains that include the production of important parts in Mexico and Canada, and all three produce hundreds of thousands of vehicles annually in both countries.

In November, major automakers including Tesla, Toyota and Ford urged the Trump administration to extend the USMCA, saying the deal is crucial to American auto manufacturing. These automakers include General Motors, Honda, Hyundai, Volkswagen and Stellantis.

The American Auto Policy Council, which represents Detroit's Big Three, said the USMCA “allows U.S.-based automakers to compete globally through regional integration, leading to increased efficiency” and represents “tens of billions of dollars in annual savings.”

GM Chairman Mark Reuss said at an event on Tuesday: “Our supply chains span all three countries. It's not simple. It's very complex,” he said. “The whole North American side of this process is a big advantage.”

Trump made the remarks during his visit to Ford's factory in Dearborn, Michigan, ahead of his economic speech in Detroit.

“The problem is we don't need their products. You know, we don't need cars made in Canada. We don't need cars made in Mexico. We want to bring them here. And that's what's happening,” the US president said.

Stellantis said in November that with tariffs of less than 15 percent with Japan, U.S. vehicles that meet North American content standards “will continue to lose market share to Asian imports at the expense of American auto workers.”

The USMCA agreement is due to be reviewed this year to decide whether to let it expire or reach a new deal.

The trade deal, which replaced the North American Free Trade Agreement in 2020 and was negotiated during President Trump's first term, requires the three countries to conduct a joint review after six years.