Trump administration wants to raise North American auto content to 82%, with half from US
The Trump administration is proposing to increase the regional content requirement for North American-built vehicles to 82 percent under the USMCA, with 50 percent of that content sourced from the United States. This proposal, which excludes Canadian parts from the calculation, marks a significant shift from the current USMCA requirements. Negotiations are ongoing, and the U.S. Trade Representative may present these new rules to Canada as a take-it-or-leave-it offer.
- ▪The proposed change aims to raise the regional content requirement for vehicles to 82 percent.
- ▪Fifty percent of the required content must be produced in the United States, excluding Canadian parts.
- ▪The current USMCA requires 75 percent regional content for vehicles to qualify for preferential treatment.
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A Toyota Tundra is inspected during the final stages of assembly at the Toyota Manufacturing Texas, Inc. plant in San Antonio on Nov. 15, 2006. AP-YonhapWASHINGTON/MEXICO CITY — The Trump administration wants to increase the level of regional content in North American-built vehicles to 82 percent to qualify for preferential treatment under the U.S.-Mexico-Canada Agreement on trade, with 50 percent of that value produced in the United States, four people familiar with the U.S. negotiating position said.The expansive demand, unveiled during this week's U.S.-Mexico negotiations over revisions to the six-year-old USMCA in Mexico City, has no provision for counting any parts content from Canada in the totals.
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