NAM Calls for Making the USMCA Even More Manufacturing Friendly

Why It Matters

Strengthening the USMCA will lock in supply‑chain resilience, protect jobs, and sustain the trade‑driven growth that underpins U.S. manufacturing competitiveness.

Key Takeaways

• 15 of 18 US manufacturing sectors grew exports to Canada and Mexico
• US firms hold $116.3 B in Canadian, $63 B in Mexican manufacturing FDI
• 71% of Canadian, 64% of Mexican imports are industrial inputs for US
• NAM urges digitized customs, AI provisions, and duty‑free critical‑mineral trade
• USMCA renewal pending; policymakers focus on supply‑chain, tariff, and investment safeguards

Pulse Analysis

The United States‑Mexico‑Canada Agreement has become the cornerstone of North American manufacturing, delivering measurable gains since 2018. Export volumes have risen across 15 of 18 U.S. sectors, and American investors now control roughly $179 billion in manufacturing assets across Canada and Mexico. Those cross‑border flows translate into more than $614 billion of U.S. imports each year, with the majority of Canadian and Mexican shipments consisting of parts and raw materials that fuel domestic production lines.

NAM’s latest report pushes the agenda beyond celebration, outlining concrete reforms to sharpen the deal’s competitive edge. Key proposals include a fully digital customs platform to cut paperwork, stronger legal shields for deep‑seated cross‑border investments, and duty‑free treatment for critical‑mineral inputs essential to electric‑vehicle batteries and renewable‑energy equipment. The association also advocates for a coordinated AI strategy, unified energy‑security measures, and tighter enforcement mechanisms to resolve disputes swiftly, ensuring the agreement remains a reliable engine for reshoring and innovation.

For policymakers, the six‑year review presents a strategic inflection point. Enhancing the USMCA can cement the United States’ manufacturing dominance, mitigate supply‑chain shocks, and counter non‑market economies that threaten a level playing field. As the Trump administration weighs renewal, the balance between preserving existing benefits and addressing lingering tariff, rules‑of‑origin, and investment‑screening concerns will shape the next era of North American trade. A modernized, manufacturing‑first USMCA could lock in jobs, spur further capital inflows, and keep the region at the forefront of global production networks.