The newly announced tariffs are also expected to particularly harm the U.S. automobile sector, one of the major concerns in USMCA. The American Automotive Policy Council (AAPC), a Washington-based group representing U.S. automakers such as Chrysler, Ford and General Motors, said the USMCA "relies on duty free access to be successful."

The imposition of tariffs against Mexico, the AAPC said, will undermine the USMCA's "positive impact and would impose significant cost on the U.S. auto industry."

Automobiles worth a total of 52.6 billion U.S. dollars were shipped to the United States from Mexico in 2018, and another 32.5 billion dollars in auto parts entered the U.S. market from Mexico during the same period, according to data from the U.S. Department of Commerce.

"Instead, Congress and the president need to work together to address the serious problems at the border," Bradley from U.S. Chamber of Commerce said in a statement Thursday following the president's announcement.

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