In a recent campaign speech, Republican presidential candidate Donald Trump announced that, if elected, he would immediately invoke the renegotiation clause of the United States-Mexico-Canada Agreement (USMCA) on his first day in office. Trump highlighted concerns over Chinese automakers building factories in Mexico, arguing that this development could negatively impact American workers, particularly in the auto industry. His remarks aimed to appeal to voters in Detroit and Michigan, a critical battleground state. Reuters noted that the move was “a push to appeal to autoworkers in the final weeks of election campaigning.”
Trump stressed that Chinese automakers plan to sell their vehicles primarily in the U.S., warning that this could severely affect Michigan’s economy. He vowed to impose up to 1,000% tariffs if necessary to stop it. Under the current USMCA, vehicles produced in Mexico are exempt from tariffs if they meet certain criteria. During his first term, Trump previously renegotiated the North American Free Trade Agreement (NAFTA), claiming it increased the U.S. trade deficit. The USMCA, implemented in 2020, requires a review of the agreement’s implementation every six years, with the first review set to occur in 2026—during the next U.S. presidential term.
Trump also courted controversy during his speech when he stated, “Our whole country will end up being like Detroit if she’s your president. You’re going to have a mess on your hands,” a remark that drew criticism for disparaging the city.
During his nearly two-hour speech, Trump reiterated his economic pledge, which he calls “Built in America.” He promised to reduce the corporate tax rate from 21%—a figure established by the tax reforms he signed in 2017—to 15%, specifically for companies manufacturing in the U.S. On regulatory reform, he pledged, “We will cut 10 old regulations for every 1 new regulation.”
Most Commented