Leading automakers including General Motors (GM), Tesla (TSLA), and Toyota Motor Corp. (TM) are calling on U.S. President Donald Trump to extend the existing North American free trade deal.
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The automakers claim that the United States-Mexico-Canada Agreement on trade (USMCA) is critically important to American auto production and the economy. The automakers banded together and made the plea in filings submitted to the U.S. Trade Representative’s Office ahead of a formal review of the North American trade pact in 2026.
In their submission, the automakers said that USMCA “enables automakers operating in the U.S. to compete globally through regional integration, which delivers efficiency gains” and accounts “for tens of billions of dollars in annual savings.”
High Stakes
The stakes are high for the automotive sector as the review approaches of USMCA, which replaced the North American Free Trade Agreement (NAFTA). The USMCA trade agreement was originally negotiated in 2018 during President Trump’s first term in office.
The North American auto market is closely integrated between the U.S., Mexico and Canada. Most automakers have manufacturing facilities in all three countries and are used to parts, labor, and completed vehicles traveling freely across borders. However, Trump’s tariffs have upended the traditional business model of U.S. automakers and caused chaos in the sector.
Is GM Stock a Buy?
The stock of General Motors has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on 14 Buy, two Hold, and two Sell recommendations issued in the last three months. The average GM price target of $72.72 implies 7.96% upside from current levels.
