Foreign automakers including Nissan, Hyundai and Toyota have warned the Trump administration they may pull affordable models from the U.S. market if USMCA is not renewed or is significantly weakened.
Foreign automakers including Nissan, Hyundai and Toyota have warned the Trump administration they may pull affordable models from the U.S. market if USMCA is not renewed or is significantly weakened. Wall Street Journal reporting.
Summary Foreign automakers including Nissan, Hyundai and Toyota have privately warned the Trump administration they may withdraw their most affordable models from the U.S. market if the USMCA is not renewed or is materially weakened Trump’s second-term automotive tariffs charge 25% on the non-U.S. content of vehicles that previously qualified as duty-free under the agreement, making entry-level models unprofitable for many manufacturers Eight of the ten cheapest new car models in the U.S. are made by foreign-based automakers, with options such as the Nissan Sentra at $22,600 and the Hyundai Venue at $20,550 among the most accessible for consumers Nissan Americas chairman Christian Meunier said tariffs have been killing affordable cars, while Toyota said it is wary of committing to major U.S. factory investment until a trade settlement is reached The White House said automakers wanting to sell to American drivers need to come to terms with the need to reshore manufacturing, and pointed to deregulation and tax cuts as support for that transition The administration has not committed to tariff-free treatment for automobiles in any revised USMCA, and U.S. Trade Representative Greer has told Mexican officials some level of tariffs are likely to persist Canada and Mexico have both signalled they require automotive tariff relief as a condition of USMCA renewal, with Mexico’s economy chief saying the country is focused on reducing rather than eliminating proposed levies Foreign automakers have delivered a stark warning to the Trump administration: without a credible renewal of the U.S.-Mexico-Canada Agreement, some of the most affordable new cars available to American consumers may be withdrawn from the market entirely. Companies including…