Several U.S. senators from the Midwest Democratic Party have written to the U.S. Trade Representative (USTR) ahead of the summer review of the United States-Mexico-Canada Agreement (USMCA), requesting that preventing Chinese automakers and supply chain companies from “using North America as a shortcut” be a key negotiation focus. They emphasized that Chinese vehicles have become a “real and urgent threat” to the U.S. economy and national security.
Led by federal senator Gary Peters from Michigan, along with senators Amy Klobuchar, Tammy Baldwin, Tina Smith from Minnesota, and Elissa Slotkin from Michigan, the senators penned a letter to U.S. Trade Representative Jamieson Greer on February 11 to outline their priorities for the upcoming USMCA review negotiations.
According to the agreement, the USMCA is set for a six-year review cycle starting in 2026, during which the three member countries can revise the agreement terms and decide whether to extend it until 2042.
In their letter, the senators pointed out that the USMCA must be further strengthened to address competitive pressures from China, particularly in the automotive industry. They emphasized that Chinese automotive and component manufacturers are rapidly increasing their manufacturing and vehicle production investments in Mexico, seeking to indirectly enter the U.S. market through the North American supply chain and tariff arrangements.
The letter stated, “The economic and national security risks posed by Chinese vehicles entering the North American market are no longer future threats but immediate realities.” The senators believe that certain inadequacies in the current agreement allow Chinese manufacturers to strategically position themselves in the North American market, which, if left unchecked, will weaken the U.S. domestic industrial base.
Earlier in January, Canadian Prime Minister Mark Carney announced that up to 49,000 Chinese electric vehicles would be allowed to enter the Canadian market annually at a preferential tariff rate of 6.1%, replacing the 100% high tariffs implemented in 2024. Some U.S. political figures view this move as potentially opening a “backdoor” for Chinese automakers to enter the North American market and have raised concerns about flaws in the agreement.
Meanwhile, the Alliance for Automotive Innovation in the U.S. has also informed Congress that China poses a “clear and present threat” to the U.S. automotive industry, calling for stronger review and prevention mechanisms.
The senators emphasized in their letter that future negotiations must ensure that foreign entities cannot exploit USMCA rules to circumvent existing or new U.S. trade laws. They believe that if the government intends to promote reshoring of critical supply chains, it must prevent “adversary nations” from gaining preferential access to the North American market.
The letter proposed implementing more targeted tariff tools, strengthening enforcement mechanisms, and developing a comprehensive industrial strategy to achieve strategic trade goals rather than creating uncertainty through blanket tariffs. The senators also pointed out that recent trade policy measures have weakened the trust between the U.S. and its neighbors, Canada and Mexico, affecting the stability of the North American supply chain.
According to data disclosed in the letter, in 2024, the total trade volume between the U.S. and Mexico, and Canada reached $945.6 billion and $917.4 billion respectively, accounting for nearly one-third of the U.S.’s total international trade volume that year, indicating the importance of the North American market to the U.S. economy.
The senators also urged that the USMCA review should be an opportunity to strengthen the coordination of the three North American countries in key industrial sectors to collectively address China’s “predatory trade practices.” They believe that through institutionalized cooperation, the overall competitiveness and supply chain resilience of North America can be enhanced.
Furthermore, the letter mentioned the need to further improve labor standards and rapid response mechanisms in the agreement to ensure that member countries like Mexico fulfill their labor commitments effectively. However, compared to labor issues, the warning regarding the layout of the Chinese automotive industry is seen as the most strategically significant point in this joint letter.
The legislators noted that in the face of “extreme competition” from China and other global competitors, strengthening North American trade and investment cooperation will be a key strategic direction to protect the U.S. domestic supply chains and employment.