The US wants autos under USMCA at least 50% made in the US – WSJ.
The Trump administration is expected to propose a change to the U.S.-Mexico-Canada Agreement that would require half of the components and materials in an automobile to come from U.S. sources in order to qualify for lower tariffs under the pact, according to people familiar with the plans
The rule would greatly increase the amount of U.S. content required in cars made under the so-called USMCA, measured by the dollar value of the components. The pact currently requires three-quarters of a vehicle’s materials to come from North American sources, but has no U.S.-specific content requirement. The new proposal was prepared ahead of negotiations over how to restructure the USMCA, which President Trump signed in 2020 and is up for review this year, according to the people familiar with planning.
A U.S. delegation is in Mexico City this week for a first round of formal discussions on the pact with the Mexican government.| FJ