As President and CEO of MEMA, The Vehicle Suppliers Association, I am proud to represent America’s largest sector of manufacturing jobs and more than 930,000 Americans who work hard every single day to keep our cars on the road in all 50 states. For the past six years, our member companies have been on the frontlines of implementing the United States-Mexico-Canada Agreement (USMCA).
As the USMCA approaches its 2026 review, this monumental trade deal will inevitably face scrutiny. Recently I had the privilege to testify before the Senate Committee on Finance and shared a message from these largely main street small and medium vehicle suppliers that was unequivocal and overwhelming: President Donald J. Trump’s USMCA vision is working. We must use the review to build on that success, define new areas of cooperation that will benefit the U.S. and preserve the agreement.
Prior to USMCA, many manufacturers shifted production to capitalize on lower costs abroad, leaving American suppliers to compete in a system that frequently incentivized offshoring. President Trump rightfully recognized that we could do better. Working with leaders on both sides of the aisle in Congress, he forged a modern deal that created a more level playing field for American workers, ensured that more parts are produced in the U.S. and strengthened intellectual property protections. This multilateral framework passed the U.S. Congress with strong bipartisan support.
Implementing these changes was not easy, but the USMCA has been a clear success for American suppliers, creating jobs, strengthening our supply chains, and giving the U.S. additional leverage to counterbalance increasing Chinese influence in the auto industry. From 2019 to 2024, U.S. parts production has increased by over $37 billion dollars while the vehicle supplier sector has added 61,000 jobs. In an environment where working families are fighting to stay above water with high prices, that is a massive jobs number that our industry is very proud of. Meanwhile, exports to Canada and Mexico have increased by 46 percent and imports have fallen by 25 percent.
Our internal surveys of members tell the same story. Under USMCA, suppliers believe that regional manufacturing has preserved U.S. jobs and afforded benefits for American consumers. Over 70% of respondents to a MEMA internal survey identified North America as the primary region for their sourcing and manufacturing operations. I hear stories every day from supplier members, especially small businesses, about how critical the USMCA has been to expanding their companies and generating novel opportunities. Thanks to this agreement, they are creating more jobs in states like Indiana, Missouri, Michigan and Arkansas and moving manufacturing back to the United States. The USMCA delivers long-term certainty and stability – which serve as the essential foundation for suppliers to continue to invest and create jobs.
These are long-term investments and our members are clear that this continued success depends on whether they can have a sense of certainty about the environment they will face. That’s why the preservation of USMCA is critical to the profitable growth of U.S. vehicle suppliers. For example, one fourth-generation, family-owned automotive supplier headquartered in Michigan, employs 200 individuals across five U.S. facilities. This company has grown by 25 percent under USMCA and is a net exporter that sources 85 percent of its raw materials from U.S. suppliers. One of its plants, located in Texas, depends on customers in Mexico for nearly two-thirds of its sales. If access to the Mexican market were cut off, the Texas plant would become unsustainable, and the business would shift to a direct competitor operating in Mexico.
As with all complex and dynamic agreements, there is room for improvement. We need rigorous enforcement to ensure USMCA rules are followed. Suppliers have invested heavily to ensure the due diligence required to meet these requirements. They cannot be placed at a disadvantage by entities that seek to avoid compliance or engage in activities such as illegal transshipment. We need to increase supply chain resiliency in the sourcing of key raw materials, technologies and parts to ensure a robust U.S. domestic supply chain.
The USMCA has become the foundation for American manufacturing across North America. But its benefits are just starting to be realized. President Trump was right to fight for American workers when he negotiated this agreement. Now, we must preserve and strengthen it to pave the path for even greater success in the future.
