Michigan Governor Gretchen Whitmer underscored the importance of extending the existing free trade agreement with Canada and Mexico, warning that the future of U.S. auto production depends on strong regional trade cooperation. As the agreement faces a review this year, she stressed that maintaining and improving the deal is critical for keeping the U.S. auto industry competitive in global markets.

 

Whitmer pointed out that modern vehicle manufacturing relies on deeply interconnected trade flows, with parts and components moving seamlessly across borders. Auto supply chains are structured to maximize efficiency, control costs, and ensure timely production—factors that would be difficult to sustain without a stable trade framework. Any move to weaken these trade ties, she cautioned, could disrupt production and raise costs for manufacturers and consumers alike.

 

She also highlighted rising global competition, particularly from China, which is rapidly expanding its automotive capabilities through tightly integrated manufacturing systems. According to Whitmer, trade disputes among regional partners could unintentionally strengthen competitors that are aggressively positioning themselves across the entire auto value chain, from raw materials to finished vehicles.

 

Automakers have similarly warned that the current trade agreement delivers significant economic benefits, supporting large-scale vehicle production and safeguarding jobs. With tens of thousands of parts required to build a single vehicle, producing every component domestically is impractical and would undermine efficiency across the industry.

 

Whitmer emphasized that trade policy should focus on collaboration rather than isolation. Strengthening existing agreements, she argued, is essential to protecting industrial competitiveness, reinforcing supply chains, and ensuring the long-term stability of U.S. auto manufacturing in an increasingly competitive global trade environment.

 

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