Manufacturers credit USMCA with strengthening supply chains ahead of review: report

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A new report from the National Association of Manufacturers (NAM) says the U.S-Mexico-Canada Agreement (USMCA/CUSMA) has strengthened manufacturing investment, exports and job creation in the U.S., while highlighting the role trucking and integrated freight networks play in supporting manufacturing growth and movement of goods across North America.

The report — based on interviews with more than 30 manufacturers ranging from OEMs to Tier 1, 2 and 3 suppliers across multiple industrial sectors — comes ahead of the agreement’s upcoming formal joint review, scheduled to begin July 1.

According to NAM, exports to Canada and Mexico currently support 2 million U.S. jobs, while 15 of 18 manufacturing sectors have increased exports to the two countries since the agreement took effect in 2020.

USMCA
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“What these manufacturers all have in common is a view that the USMCA has been an anchor for manufacturing investment and expansion in the U.S., job and wage increases for American workers and export growth to the region,” the report reads.

NAM said the agreement’s duty-free movement of goods has helped manufacturers benefit from the close geographic proximity of Canada, the United States and Mexico.

Made in America

“The numbers speak for themselves,” NAM says, citing annual North American trade in goods and services reaching $1.9 trillion in 2025, an equivalent of more than $3.5 million in transactions every minute.

The agreement has helped strengthen domestic manufacturing, too, the association argues, saying that 71% of imports from Canada and 64% of imports from Mexico are industrial inputs used in further manufacturing in the United States, including products tied to aircraft and defense systems, automotive parts and vehicles, electrical grid components, robotics and industrial automation, personal electronics and more.

NAM also highlighted the importance of Canada and Mexico as suppliers of critical minerals and manufacturing inputs, saying the relationship helps manufacturers shift sourcing “away from adversaries and toward allies.”

According to the report, nearly $614 billion in U.S. imports annually move under USMCA provisions.

Trucking as a backbone

The report repeatedly points to trucking and freight transportation as a critical “backbone” supporting North America’s integrated manufacturing system.

Manufacturers interviewed for the report cited the interconnected highway networks linking Canada, the United States and Mexico as a major competitive advantage, allowing components and semi-finished goods to move efficiently between plants and suppliers.

Balluff, an industrial automation manufacturer surveyed for the report, said its operations in Mexico help the company “take advantage of the highway systems that connect all three countries,” lowering costs and improving reliability for customers.

The report argues that geography itself gives North American manufacturing a competitive edge, saying that moving freight north and south between Canada, the United States and Mexico is often faster and more cost-effective than moving goods east-west across the United States, especially for heavy raw materials that feed into advanced manufacturing. Mexico and Canada offer the advantage of proximity, reducing transportation costs and shortening delivery times relative to other trading partners, the report reads.

NAM also highlighted the role streamlined customs procedures and regulatory alignment under the USMCA play in reducing delays and administrative friction for carriers and manufacturers operating across borders.

Manufacturers unanimously said the agreement’s unified rules framework creates greater predictability for logistics planning and investment decisions, particularly for smaller operations moving freight across multiple borders.

The report also highlighted that regional trucking operations provided stability during pandemic-era ocean freight disruptions, helping manufacturers like American Textile Company avoid soaring international shipping costs and delays.

Dragonfly Energy, a supplier of lithium battery packs used in heavy-duty trucking energy storage systems, said access to components and materials from Canada and Mexico strengthens supply chain resiliency while reducing reliance on Asian suppliers.

“Economies like Canada and Mexico are extremely important for us to source components that otherwise we wouldn’t be able to source anywhere other than Asia at a competitive price,” the company said in the report. “We’ve been exploring further expansion into North America. But before we do so, we need to understand what our supply chain access is going to look like,” Dragonfly said, advocating that CUSMA is the key to future company growth.

The report features further testimonials from companies across different manufacturing sectors, including CNH, Unicorr, Advanced Superabrasives Inc., Brunswick Corporation, Amphenol Corporation, Hydro, Thermo Fisher Scientific, Dauch Corporation and more.

Read the full report for free here.

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