Supply Chain

U.S. Manufacturing Industry Calls for Making USMCA Even More Manufacturing-Friendly

Author: Sedat Onat
Map and container terminal representing manufacturing supply chain integration among USMCA member countries USA, Canada and Mexico
U.S. Manufacturing Industry Calls for Making USMCA Even More Manufacturing-Friendly
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The National Association of Manufacturers (NAM) described the USMCA as "the most pro-U.S. manufacturing trade agreement in history" while stating that the agreement can be further strengthened during the six-year review negotiations. NAM's report coincides with trade groups representing various sectors including retail, consumer brands, auto parts, textiles and apparel urging the Trump administration to promptly renew the USMCA and pursue sector-specific improvements.

At a U.S. Trade Representative hearing held in December 2025, trade association officials called for measures such as expanding the list of levy-free goods to include items unavailable in the three countries; better aligning regulatory, legal and safety requirements; implementing more uniform standards in reviewing and settling disputes; and stating clearer, more consistent due-process rules. Companies from auto and other sectors are also lobbying for changes such as tariff protections or to preserve existing provisions that are important to them.

According to the report, nearly $614 billion of U.S. imports for consumption utilize the USMCA every year. In addition, 71% of imports from Canada and 64% of imports from Mexico are industrial materials, parts and components that go into further manufacturing in the U.S. NAM praised the USMCA and called for its swift renewal. It said the agreement is the "foundation for manufacturing dominance in the U.S." and has increased exports to member countries, boosted investment and expanded hiring.

NAM President and CEO Jay Timmons said in a statement, "The USMCA is a proven engine for America's manufacturing strength, ensuring that more products bear the imprint 'Made in America.'" Timmons credited the agreement for manufacturers' decisions to reshore production and investments. The report was based on interviews with more than 30 small, medium and large manufacturers, representing a variety of sectors. The report called for several changes to strengthen the agreement even further, including improvements in customs procedures, regulatory harmonization and intellectual property protection.

U.S. Trade Representative Jamieson Greer told Congress in December that the United States is looking to secure changes to the deal before agreeing to extend it. Although he cited the USMCA's success in increasing U.S. exports to Canada and Mexico, he also listed what the U.S. perceives as shortcomings on key supply chain topics like tariffs, rules of origin and critical minerals. At the same time, manufacturers have expressed reluctance to nearshore operations before the review is complete and key issues are ironed out, especially regarding tariffs.


Key Takeaways:
1. NAM describes USMCA as the most pro-U.S. manufacturing trade agreement but calls for enhancements during the six-year review.
2. Approximately $614 billion of U.S. consumption imports occur annually under the USMCA.
3. 71% of imports from Canada and 64% of imports from Mexico are industrial materials used in further U.S. manufacturing.
4. The report proposes improvements in customs procedures, regulatory harmonization and intellectual property protection.
5. Manufacturers are reluctant to nearshore operations before key issues, especially regarding tariffs, are resolved.

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