Trump Signals US May Not Renew USMCA
President Donald Trump said Wednesday that he may not support renewing the U.S.-Mexico-Canada Agreement (USMCA), the North American trade pact negotiated during his first term. The president argued that the United States does not need Canada or Mexico as much as they need the U.S. and criticized persistent trade deficits with both countries. Canada and Mexico have both formally called for renewing the agreement, and U.S. and Mexican officials have begun the first formal negotiations to review and potentially revise the USMCA. Canada has so far been excluded from these initial discussions.
Under the agreement’s terms, the three countries must jointly decide whether to extend the pact for another 16 years during the scheduled review process. If they fail to reach consensus, the agreement remains in force for an additional 10 years and is subject to annual reviews. Any party may also withdraw from the USMCA by providing six months’ notice. Negotiations are expected to continue well beyond the July 1 statutory review deadline.
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Quotes of the Week
“We don’t need anything that Canada has, we don’t need anything that Mexico has, but they need everything that we have. They just have to treat us better. With Mexico or Canada we have trade deficits. We should have surpluses with them.” -President Donald Trump (Politico)
“One of the challenges in our conversation with the United States is we keep fighting this conversation around trade deficit, trade deficit. Canadians buy more vehicles and light duty trucks from the United States than Germany, Mexico and China combined.” -Janice Charette, Canadian Chief Trade Negotiator (Politico)
ICYMI
In case you missed it, AIADA will host the next AutoTalk webinar on June 18:
Charlie’s Real-Time Quarterly Market Update
Thursday, June 18 – 2:00 p.m. ET
Cox Automotive Senior Economist Charlie Chesbrough returns to present the most up-to-date, real time data. Topics to be reviewed include:
Economic outlook – is recession ahead from high oil prices?
Brands and products that may be vulnerable
Powertrain sales and the big year of hybrids
Register Now!
Friday Feel Good
Here is just one recent example of how dealers are doing good in their communities:
Sheehy Toyota of Fredericksburg in Virginia has donated $10,000 to the Brisben Center, a nonprofit that assists families experiencing homelessness. The contribution will support the center’s daily operations and programs aimed at helping families move toward long-term stability. (Patch.com)
We want to hear more about how you are supporting your local community – contact us on X @AIADA_News and use the hashtag #DealersDoGood.