Mexico’s aerospace sector is growing. Will it be undercut in USMCA review?

Mexico's aerospace industry, which has experienced significant growth due to the USMCA trade agreement, faces uncertainty as the agreement undergoes review. President Sheinbaum has highlighted the sector's potential for continued expansion, driven by a strong workforce and increasing exports. However, the USMCA review, coupled with potential tariffs from the US, threatens the industry's stability. Stakeholders emphasize the importance of investment security and strong labor standards to protect the North American aerospace supply chain. Mexico aims to become a top 10 aerospace producer, but recent trade policies have eroded trust and could jeopardize investments and jobs in the sector.

The leaders of the US, Mexico, and Canada met in Washington D.C. for the 2026 World Cup draw, marking their first joint appearance. Donald Trump, Claudia Sheinbaum, and Mark Carney participated in the draw, despite ongoing trade tensions between the countries. The leaders' cordial interactions occurred amidst uncertainty surrounding the USMCA trade agreement, which is up for mandatory review next year. Sheinbaum and Carney have both expressed interest in preserving the agreement. Trump held separate meetings with Sheinbaum and Carney to discuss trade issues and the USMCA's future. All three leaders agreed to continue working together on trade matters.

In December 2025, the Trump administration began hearings in Washington D.C. to review the U.S.-Mexico-Canada Agreement (USMCA), which replaced NAFTA in 2020. The hearings brought together farmers, academics, and trade groups to assess the deal and influence the administration's upcoming negotiations with Canada and Mexico. While some see room for improvement, many cautioned against actions that could harm the benefits of tariff-free trade across North America. Concerns arose from President Trump's past criticisms of free trade and recent statements suggesting he might withdraw from the USMCA if a "better deal" isn't reached, causing anxiety in industries reliant on the agreement. The USMCA is up for renewal in about a year.