CUSMA Renewal ‘Very Important’ for Auto Industry, General Motors Says

As uncertainty continues around North American trade relations, General Motors Canada says the Canada-United States-Mexico Agreement, known as CUSMA, remains highly important for keeping the auto industry connected across the continent.

Speaking to Global News at the Calgary Stampede on Sunday, Jack Uppal, president and managing director of General Motors Canada, said the agreement helps protect North America’s auto sector from global competitors and makes the industry stronger.

GM Canada Says CUSMA Supports Auto Industry Integration

Uppal said CUSMA plays a major role in keeping the North American automotive industry well-integrated.

He explained that the agreement helps the sector remain competitive against other international players by supporting cross-border supply chains, production and trade.

According to Uppal, the agreement is not just useful for Canada, but for the broader North American auto market.

Trump Signals Changes to CUSMA Future

The comments come after U.S. President Donald Trump said last week that the United States would not renew CUSMA in full through 2042, which would have been the end date under the agreement’s possible 16-year extension.

Instead, Trump said the deal would need to go through an annual review process.

If no extension is agreed upon, CUSMA is currently set to expire in 2036.

Trump Previously Suggested U.S. May Be Better Without CUSMA

Last month, Trump suggested that the United States may be “better without” CUSMA and said he would prefer to see the agreement “terminated.”

When asked by Global News whether the administration was considering withdrawing from the deal, U.S. Ambassador to Canada Pete Hoekstra did not rule it out.

Hoekstra said “all options are on the table” and noted that termination is permitted under the agreement. Any party can exit the deal by giving six months’ formal notice.

CUSMA Has Helped Shield Canada and Mexico From Tariffs

CUSMA has largely protected Canada and Mexico from some of the tariffs imposed by the Trump administration.

Uppal said tariffs are something GM continues to monitor closely.

However, he said the company has so far been able to protect its market pricing and manage costs in a way that keeps customer affordability in focus.

Affordability Remains Central for GM

Uppal said the company’s priority is to keep customers at the centre of its decisions.

He said affordability remains one of the most important challenges in the current environment, especially as geopolitical uncertainty and tariff concerns continue.

According to Uppal, GM must focus on delivering value across its product lineup to reduce the impact of uncertainty that the company itself cannot fully control.

GM Leads Canadian Auto Sales in First Half of 2026

General Motors finished the first half of 2026 as Canada’s best-selling automaker.

The company held a 15.4 per cent market share and delivered 148,640 vehicles during that period.

GM also reported more than 30 per cent year-over-year growth in electric vehicle sales.

Even in Alberta, where EV adoption has traditionally been lower than in some other provinces, GM’s electric vehicle sales increased by about 30 per cent.

EV Growth Continues Despite Uncertainty

Uppal said GM is operating in an uncertain geopolitical environment, with trade questions and tariff concerns creating noise in the market.

However, he said the main issue for customers remains affordability.

He emphasized that GM must continue offering strong value while meeting consumer demand for technology, connectivity and choice.

Canadian Consumers Want More Options

Although GM has shifted significant production to the United States, Uppal said many of the company’s values still match what Canadian buyers want.

He said consumers are increasingly demanding more choice, more technology and better connectivity in their vehicles.

For GM, offering a broad range of vehicles remains essential, especially as customer needs continue to evolve.

Uppal Expects Trade Uncertainty to Be Resolved

Uppal said he believes the uncertainty surrounding CUSMA will eventually “sort itself out” as Canada, the United States and Mexico continue discussions.

However, Canadian officials appear less certain about what the review process will look like.

Canada and Mexico Seek Clarity From U.S.

Canada-U.S. Trade Minister Dominic LeBlanc told The Canadian Press that he asked U.S. Trade Representative Jamieson Greer how the annual review discussions would be structured.

LeBlanc said the request was made together with Mexican Economy Secretary Marcelo Ebrard.

According to LeBlanc, no clear answer was provided during the meeting, but all sides agreed to continue discussions in the coming weeks.

Annual Review Could Last Up to 10 Years

The annual review process introduced by the Trump administration could continue for up to 10 years.

If no agreement is reached on how to extend CUSMA beyond its current expiry date, the agreement would end in 2036.

At this point, it remains unclear exactly how the annual reviews will be carried out.

General Motors Canada says CUSMA remains vital for keeping the North American auto industry integrated and competitive during a period of trade uncertainty. Jack Uppal said the agreement strengthens the industry and helps protect it from global competitors, while GM continues to focus on affordability, customer choice and value.

With President Donald Trump calling for annual reviews instead of a full extension to 2042, Canada and Mexico are seeking clarity on how the process will work. For now, the future of CUSMA remains uncertain, but its role in supporting Canada’s auto sector continues to be significant.