The US just declined to renew USMCA (aka new NAFTA), and that's bad news bears for thousands of US firms. Autos make up 18% of trade between the US, Canada, and Mexico, and the supply chain is deeply intertwined across all 3 countries. Tariffs already drove a 625% cost increase on autos and parts since Liberation Day 2025. With average MSRP above $51,000, how much higher prices can go before people stop buying?
CHAPTERS
00:00 USMCA Not Renewed
00:52 Why It Matters
01:39 Autos Supply Chains
02:10 Tariffs And Fallout
03:31 Leaders And Talks
04:16 US Demands And China
05:16 Connected Car Security
06:02 Costs And Car Prices
07:16 Automakers Adapt
08:04 What Comes Next
IF YOU LIKED THIS, WATCH:
→ Autos Can't Choose Between Military and China: https://youtu.be/uvOGcIjL1_I
→ US Locks Out China While Canada Doubles Down: The Future of Your Car: https://youtu.be/Q__ke5iP51Y
SOURCES & FURTHER READING
USMCA Trade Agreement and the Review Decision
• Official USMCA Agreement Terms and Highlights: https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement
• What USMCA's Uncertain Future Means for North American Trade: https://www.atlanticcouncil.org/blogs/econographics/the-five-stages-of-a-usmca-shakeup/
• Why Letting USMCA Erode Quietly Is the Real Risk: https://www.csis.org/analysis/dont-let-usmca-drift-away
Auto Industry Exposure to USMCA Uncertainty
• How the USMCA Review Is Deepening Auto Industry Uncertainty: https://www.cnbc.com/2026/07/01/automakers-usmca-trade.html
Connected Cars and the China Software Ban
• Why Polestar Is Being Forced Out of the US EV Market: https://www.caranddriver.com/news/a71728510/polestar-exiting-america-connected-car-rule/
Public Opinion on USMCA
• Financial Times: Polling on USMCA Support: https://www.ft.com/content/2c7b4dc8-1b1c-49f4-b51a-0dee0c1d216a?syn-25a6b1a6=1
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