U.S. business groups call to lock in the USMCA and avoid new tariffs on Mexico
More than 60 business associations in the United States are pushing to extend the USMCA and head off tariffs that could raise production costs across North America.
A coalition of more than 60 U.S. business associations sent a letter to U.S. Trade Representative Jamieson Greer asking for two things: extend the USMCA for an additional 16 years and avoid imposing new tariffs on Mexico and Canada. The request comes as the trade pact moves into a period of heightened scrutiny ahead of the review scheduled for 2026, and as North America’s industrial and economic-security agenda has grown more sensitive to issues such as supply chains, costs, and the availability of strategic inputs.
In the letter, the private-sector groups—ranging from the auto and energy industries to agriculture, technology, and retail—acknowledge that the public hearings held last year were “transparent and inclusive” and reflected a consensus on the importance of the USMCA as a rules-based framework. However, they underscore a core concern: major changes to the agreement, especially to rules of origin, could create costly disruptions in supply chains built over years through long-term investment.
The business case is that the USMCA’s current structure underpins investment and production decisions that depend on regulatory certainty. Significant revisions, they argue, could translate into higher costs for companies, higher prices for consumers, and a loss of regional competitiveness versus Asia and Europe—right as the relocation of production (nearshoring) has put Mexico on the radar for advanced manufacturing, auto parts, medical devices, electronics, and logistics.
Signatories include the U.S. Chamber of Commerce, the National Retail Federation, the Semiconductor Industry Association, the American Petroleum Institute, agricultural producer associations, and the Alliance for Automotive Innovation. The group also noted that last December more than 500 organizations had already expressed support for the agreement, and said it is willing to work with the trade office to “restore predictability and certainty” in North American trade.
Implications for Mexico: investment, the exchange rate, and the infrastructure challenge
For Mexico, the message from the U.S. private sector matters because the USMCA has become an anchor of confidence for investment and exports, particularly in northern states and the Bajío region. Productive integration with the United States explains a substantial share of Mexico’s manufacturing momentum: autos, auto parts, electrical equipment, computing, and machinery depend on clear rules to meet origin requirements, certify regional content, and maintain preferential access. In that context, any threat of tariffs or regulatory uncertainty tends to show up in expansion decisions, investment timelines, and financing costs—with potential effects on industrial employment and local tax revenue.
In the short term, bouts of trade tension typically increase risk aversion and can affect appetite for Mexican assets, with implications for corporate financing and, at times, for peso volatility versus the U.S. dollar. Looking ahead, the biggest challenge is turning the nearshoring opportunity into sustained productive capacity: reliable energy and water supply, security along logistics corridors, expanded ports and border crossings, and regulatory certainty. Without those elements, Mexico may attract fewer projects—or bring them in with less value-added content.
The letter also highlights a technical but important issue: rules of origin. For Mexico, tightening them could mean adjustments in sourcing and higher compliance costs; for the United States, it could raise the cost of parts and components that are currently produced efficiently within the region. In sectors such as autos, where platform planning takes years, abrupt changes can trigger complex reorganizations—or even redirect investment to other regions if the cost equation stops being competitive.
At the same time, Mexico faces its own challenges in the trade relationship: strengthening labor verification mechanisms, increasing domestic content without sacrificing efficiency, and resolving bottlenecks that currently limit nearshoring. In that mix, the U.S. private sector’s stance acts as a counterweight to protectionist impulses: it prioritizes stability, zero tariffs on goods that comply with the agreement, and targeted solutions to frictions rather than a fundamental rewrite of the trade framework.
Overall, the pressure from these associations suggests that a significant part of the U.S. economy views the USMCA as a tool for regional competitiveness rather than a political concession. For Mexico, the message reinforces that the agreement’s certainty remains a strategic asset—though fully leveraging it will depend on domestic progress in infrastructure, energy, and the broader investment climate.
