The U.S. International Trade Commission has launched a new investigation to assess how the United States-Mexico-Canada Agreement (USMCA) is affecting the competitiveness of the North American automotive industry.
The fact-finding study, initiated on February 19, represents the third in a series of five reports required under the USMCA Implementation Act. The next report is scheduled to be delivered to policymakers by July 1, 2027.
The investigation will examine how the agreement’s automotive rules of origin influence production, trade patterns and supply chain decisions across the region.
These rules determine whether vehicles and automotive components contain sufficient content from USMCA member countries to qualify for tariff-free trade. The framework covers passenger cars, light and heavy trucks as well as a wide range of automotive parts.
Industry experts are paying close attention to the study because of the rapid technological changes reshaping the automotive sector.
Micah Burbanks-Ivey, an associate attorney at Holland & Knight, said he is particularly interested in how the report addresses supply chains for electric vehicles and advanced technologies, including batteries, semiconductors and critical minerals.
Previous research from the USITC already highlighted potential gaps in the current framework. The commission’s 2025 report found that the rise of electric vehicles is creating mismatches between traditional tariff classifications and the rules of origin applied to new vehicle technologies.
Many manufacturers also indicated that certain rules may become less relevant as the industry evolves, particularly for components such as e-axles, batteries, touchscreens, cameras and semiconductors.
Another concern raised by manufacturers relates to the availability and cost of lithium-ion batteries produced within the USMCA region, which remains limited.
The upcoming study is expected to provide new evidence that could influence future policy discussions and potentially reshape supply chains for advanced vehicle production across North America.
