US manufacturing group urges Trump to block USMCA renewal over China auto investments in Mexico

The Alliance for American Manufacturing has called on the Trump administration to block the renewal of the US-Mexico-Canada Agreement (USMCA), alleging that Chinese automakers are using investments in Mexico to circumvent the trade deal and gain access to the U.S. market. The pact entered its first mandatory six-year review on Wednesday. The Washington-based advocacy group, backed by domestic manufacturers and the United Steelworkers union, argues that stronger rules of origin are needed to prevent Beijing from leveraging the agreement. However, analysts caution that full decoupling from China's automotive industry remains difficult due to North America's continued reliance on Chinese-sourced motor vehicle components and Mexico's export manufacturing legacy.