Trump administration wants to raise North American auto content to 82%, with half from U.S.
The Trump administration is proposing to raise the regional content requirement for North American-built vehicles to 82% under the USMCA. This new requirement would stipulate that 50% of the content must be produced in the United States, with no mandatory content from Canada. This proposal marks a significant change from the existing USMCA standards.
- ▪The proposed increase in regional content is part of negotiations in Mexico City over revisions to the USMCA.
- ▪Currently, the USMCA requires 40% of core parts value for passenger cars to be produced in high-wage jurisdictions.
- ▪The existing threshold for pickup trucks is 45%, and overall vehicles must have 75% North American content to qualify for preferential treatment.
Opening excerpt (first ~120 words) tap to expand
ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe Trump administration wants to increase the level of regional content in North American-built vehicles to 82 per cent to qualify for preferential treatment under the U.S.-Mexico-Canada Agreement on trade, with 50 per cent of that value produced in the United States, four people familiar with the U.S. negotiating position said.The proposal, unveiled during this week’s U.S.-Mexico negotiations over revisions to the six-year-old USMCA in Mexico City, has no provision for requiring any content from Canada, which is not represented at the talks, the sources said.The shift, if accepted, would be a major break from the current USMCA, which requires that 40 per cent of the “core parts” value of North American…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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