The United States-Mexico-Canada Agreement (USMCA) helps make trucks and cars more affordable in the United States, according to the National Automobile Dealers Association (NADA) and its American Truck Dealers (ATD) division.
For this organisation, the USMCA has been instrumental in developing and implementing cooperation activities between the United States, Mexico and Canada, and in supporting a strong economic environment to encourage production in North America.
Trucks and cars more affordable
The Association’s message was sent in a letter to the US government as part of consultations for the review of the USMCA.
NADA urged the United States Trade Representative (USTR) to seize the opportunity to renew and strengthen the trade alliance with neighbouring countries. In particular, it highlighted the relevance of automotive products within the framework of the USMCA.
In this context, NADA stressed that the USMCA is vital to maintaining vehicle affordability, protecting US jobs and sustaining a strong North American economy. It also stated that the agreement promotes investment and strengthens competitiveness, productivity and technological leadership.
On the other hand, NADA and ATD represent more than 16,000 franchised car and truck dealers. Together, they employ more than 1.1 million people in the United States, mainly in small businesses, as defined by the SBA.
Tariff policy
The new tariff offers partial relief for the portion of the truck’s value generated in the United States, provided it meets USMCA standards. Through a refund credit, manufacturers can offset part of the tariffs applied to parts.
This mechanism allows for the recovery of an amount equivalent to 3.75% of the added value of trucks assembled in the United States between 2025 and 2030. Thus, the credit is positioned as a key benefit that directly impacts the cost of commercial vehicles.
However, according to NADA, commercial trucks face affordability issues for US companies. Consequently, new production barriers or perceptions of instability in supply chains could pose significant economic risks.