North American auto sector braces for prolonged USMCA uncertainty

With no extension by the Wednesday deadline, USMCA could enter a year-long review or expire in 2036, creating renewed uncertainty for automakers whose North American supply chains rely on the pact. Negotiators are weighing higher regional value-content rules (potentially 82% with 50% U.S. content), while industry groups warn that sharp changes could raise costs and curb investment. Canada remains cautiously optimistic a trilateral deal can be reached this fall, as talks balance competitiveness with China and the costs of onshoring production.