24 days ago
- Donald Trump declined to renew the USMCA, jeopardizing tariff-free North American trade and business certainty.
- NAFTA/USMCA enabled deeply integrated cross-border supply chains, especially in the auto industry, boosting competitiveness and lowering costs.
- Uncertainty from rolling negotiations is damaging; predictability is more valuable than low tariffs alone.
- Trade deficits with Mexico and Canada are highlighted, but these countries are top U.S. export markets, showing mutual dependency.
- China's influence looms, with concerns about transshipment through Mexico, leading to calls for conditional tariffs to protect regional industries.
- Job losses in manufacturing are largely not due to NAFTA/USMCA; protectionism is unlikely to restore them.
- Some experts advocate for a stronger North American integration, like a customs union, to counter global challenges.
- Trump's focus on trade deficits overlooks the benefits of integrated supply chains and long-term partnerships.