The lack of an extended renewal for the agreement necessitates annual negotiations, stalling investment and forcing global automakers to rethink their continued presence in Mexico.
Matías Domínguez Thursday, July 16, 2026 · 12:38 PM Does the USMCA threaten auto manufacturing in Mexico? Luis Lozano, former president of Toyota Motors, analyzes the impact of USMCA instability on global investments.
Mexico's automotive industry is facing a period of uncertainty stemming from the United States' decision not to extend the United States-Mexico-Canada Agreement (USMCA) for a long-term period, forcing the three nations to negotiate terms annually. Luis Lozano, former president of Toyota Motors, warned that this scenario complicates decision-making for global corporations operating in the country.
The current landscape—defined by the need to reach agreements year after year—has slowed the growth the sector had maintained since the agreement took effect in 2020. According to the expert, companies face a critical dilemma regarding where to locate new production lines and development plans.
"The automotive industry has been holding back to see what would happen. At this point, however, investments, development plans, capacity expansion plans, and plans for developing new vehicle generations can no longer be delayed much longer; consequently, this leaves corporations facing a dilemma: what do we do, where do we locate, and where do we carry this out?
https://heraldodemexico.com.mx/economia/2026/7/16/el-t-mec-amenaza-la-manufactura-de-autos-en-mexico-850663.html 
