Industry Stakeholders Discuss State Of USMCA At USTR Hearing

Highlights

• The Office of the U.S. Trade Representative (USTR) on Dec. 3-5, 2025, held a hearing regarding the six-year review of the United States-Mexico-Canada Agreement (USMCA) that featured panelists representing a broad range of industries impacted by the agreement.
• Though some stakeholders advocated for maintaining the current framework, many called for targeted updates – particularly strengthening rules of origin, labor value content requirements and enforcement mechanisms. Despite varied perspectives, there was broad consensus that USMCA should be preserved.
• Transshipment and circumvention of p 232 tariffs emerged as recurring concerns, particularly from the automotive, steel and aluminum, and wood and lumber sectors. Panelists warned that non-market economies, especially China, are exploiting USMCA by routing raw materials and components through Canada and Mexico, where minimal processing or assembly qualifies them for preferential treatment under