{"id":73096,"date":"2026-10-15T19:38:14","date_gmt":"2026-10-15T23:38:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trade-tensions-and-ev-market-slowdown-lutnick-casts-doubt-on-usmca-as-global-sales-slump\/73096\/"},"modified":"2026-10-15T19:38:14","modified_gmt":"2026-10-15T23:38:14","slug":"trade-tensions-and-ev-market-slowdown-lutnick-casts-doubt-on-usmca-as-global-sales-slump","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trade-tensions-and-ev-market-slowdown-lutnick-casts-doubt-on-usmca-as-global-sales-slump\/73096\/","title":{"rendered":"Trade Tensions and EV Market Slowdown: Lutnick Casts Doubt on USMCA as Global Sales Slump"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. Commerce Secretary Howard Lutnick<\/strong> has signaled a shift toward <strong>bilateral trade negotiations<\/strong>, casting significant doubt on the future of the <strong>U.S.-Mexico-Canada Agreement (USMCA)<\/strong>.<\/li>\n<li><strong>Global Electric Vehicle (EV) sales fell 2% in September 2026<\/strong>, totaling <strong>2.15 million units<\/strong> and ending a six-month growth streak as weakness in China and North America offset record European demand.<\/li>\n<li><strong>North American EV sales plummeted 44%<\/strong> year-over-year, largely attributed to the expiration of federal tax credits and high-interest rate environments.<\/li>\n<li><strong>Mexico and the U.S.<\/strong> are attempting to finalize a deal on steel and auto tariffs before the <strong>November midterm elections<\/strong>, despite the broader breakdown in trilateral cooperation.<\/li>\n<\/ul>\n<h2>Trade Policy: Lutnick Challenges USMCA Framework<\/h2>\n<p>U.S. Commerce Secretary <strong>Howard Lutnick<\/strong> has intensified his criticism of the current North American trade structure, suggesting that the <strong>USMCA<\/strong> should be replaced by separate, bilateral agreements with <strong>Mexico<\/strong> and <strong>Canada<\/strong>. Speaking on the sidelines of recent trade discussions, Lutnick argued that the trilateral deal &quot;needs to be reconsidered and reimagined,&quot; specifically targeting what he described as unfair trade imbalances.<\/p>\n<p>The shift in rhetoric comes as <strong>Mexico<\/strong> seeks to resolve a deepening tariff stalemate. President <strong>Claudia Sheinbaum<\/strong> and Economy Secretary <strong>Marcelo Ebrard<\/strong> have been engaging in high-stakes negotiations to lower tariffs on <strong>Mexican autos and metals<\/strong>, which they argue are &quot;unfairly&quot; harming the regional economy. While progress has been reported on 54 non-tariff issues, the fundamental future of the trade pact remains in jeopardy.<\/p>\n<h2>Automotive Sector: Global EV Sales Hit a Roadblock<\/h2>\n<p>The global transition to electric mobility faced a setback in September as total sales dipped to <strong>2.15 million vehicles<\/strong>, a <strong>2% decline<\/strong> that halted a half-year of consistent growth. Data from <strong>Benchmark Mineral Intelligence<\/strong> reveals a stark divergence between regions: while <strong>Europe<\/strong> hit a record high with <strong>600,000 units sold<\/strong> (up 10% from its previous peak), the rest of the world struggled.<\/p>\n<p>In <strong>China<\/strong>, the world&#39;s largest EV market, sales dropped <strong>18% to 1.11 million vehicles<\/strong>, forcing domestic giants like <strong>BYD<\/strong> (<a href=\"\/stock\/BYDDY\">BYDDY<\/a>) to pivot more aggressively toward export markets. Meanwhile, <strong>North America<\/strong> saw its steepest decline of the year, with sales falling <strong>44%<\/strong>. Analysts note that this drop reflects a difficult comparison to the previous year when consumers rushed to buy vehicles before the expiration of federal tax credits.<\/p>\n<h2>Market Implications and Outlook<\/h2>\n<p>The cooling EV market is putting pressure on major manufacturers like <strong>Tesla<\/strong> (<a href=\"\/stock\/TSLA\">TSLA<\/a>), which has seen fluctuating registration numbers across European markets. Despite the monthly dip, year-to-date global EV volumes remain up <strong>3% at 15.5 million units<\/strong>, suggesting a &quot;bumpy&quot; rather than a collapsing trajectory for the industry.<\/p>\n<p>Looking ahead, the intersection of trade policy and automotive manufacturing will be critical. If <strong>Lutnick<\/strong> successfully pushes for bilateral deals, the supply chains for companies like <strong>General Motors<\/strong> (<a href=\"\/stock\/GM\">GM<\/a>) and <strong>Ford<\/strong> (<a href=\"\/stock\/F\">F<\/a>)\u2014which rely heavily on the integrated North American market\u2014could face significant disruption. Investors are closely watching the fourth round of trade talks scheduled for late September for any signs of a definitive framework.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. Commerce Secretary Howard Lutnick has signaled a shift toward bilateral trade negotiations, casting significant doubt on the 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