U.S. workers stand at risk as China leverages a weak USMCA.
For Immediate Release: July 1, 2026
Washington, D.C. — If the United States-Mexico-Canada (USMCA) review fails to strengthen rules of origin and close loopholes, the Alliance for American Manufacturing (AAM) urges the Trump administration to withdraw from the 2020 trade agreement, of which offical review between the nations began today.
“This review cannot be a rubber stamp,” AAM President Scott Paul said. “The United States has a critical opportunity to renegotiate the agreement and defend America’s workers. Though China is not a partner in this trade deal, its automakers are working hard to leverage it to infiltrate the U.S. market. A strong USMCA with robust rules of origin would establish a necessary roadblock to Beijing’s U.S. auto market access.”
AAM calls on the White House to negotiate an updated USMCA that includes expanded rules of origin for all stages of manufacturing, including upstream inputs that are critical for components and the completion of final product assembly or manufacturing.
In a 2024 report, AAM examined how Chinese automakers have leveraged the USMCA to access the U.S. market.
BACKGROUND:
- Chinese foreign direct investment (FDI) in Mexico rose from $38 million to $386 million between 2011 and 2021, making China the fastest-growing source of foreign investment in Mexico.
- China’s greenfield FDI capital expenditures in Mexico increased from $267 million in 2018 to $5.6 billion in 2023, with $3.5 billion directed to automotive manufacturing alone.
- According to a 2025 public opinion survey conducted by Morning Consult on AAM’s behalf, Americans are rightly concerned about USMCA loopholes that allow China to benefit, with 55% saying it is important to make sure that China doesn’t benefit from the agreement as part of the joint review.
- Morning Consult finds that strong majorities prioritize protecting U.S. workers from losing their jobs (81%), preventing surges of imports that disrupt the U.S. economy (70%), bringing back auto production from Mexico (68%) and factories that were outsourced to other countries (68%), and strengthening workers’ rights in Mexico to level the playing field with U.S. workers (55%).
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