Trump administration wants to raise North American auto content to 82%, with half from US
The proposal would also raise the North American content threshold to 82%, a move automakers say could be hard to meet.
- On Thursday, U.S. negotiators in Mexico City proposed increasing North American vehicle content to 82%, with 50% sourced from the United States, effectively excluding Canada from current trade discussions.
- The current USMCA requires 75% regional content without U.S.-specific thresholds. President Donald Trump has pursued this shift to boost domestic manufacturing, building on last year's 25% tariffs on imported vehicles and components.
- Dealer services provider Cox Automotive Inc. warned the requirements could further raise vehicle prices, noting many vehicles currently fall short of the 50% target, including the Ford Maverick at 25% and Jeep Compass at 36%.
- Following the reported proposal, the S&P automaker index dropped Friday; shares of Ford Motor Co. gained 4.7% while General Motors Co. slid 1.3% and Stellantis NV fell more than 2.5%.
- Negotiators will resume talks with Mexico on June 16 and 17, with a third round in July; it remains unclear how or whether the U.S. will engage Canada given ongoing impasses over trade and Chinese relations.
23 Articles
23 Articles
The Japan Times
Trump administration wants to raise North American auto content to 82%, with half from U.S.
The proposed new thresholds were revealed to automakers during two days of bilateral talks to revise the U.S.-Mexico-Canada Agreement on trade that concluded on Friday.
The U.S. government would be seeking to tighten the rules of origin of the T-MEC for the automotive industry, in order to increase domestic content in vehicles manufactured in North America.According to The Wall Street Journal, it has been argued that 50% of the total value of automotive components comes from suppliers established in the United States.The U.S. seeks to change T-MEC rules to have greater benefit in the automotive industrySources …
Trump wants more US parts in vehicles as part of USMCA trade talks
The Trump administration is expected to propose stricter automotive sourcing requirements in upcoming negotiations to renew the U.S.-Mexico-Canada Agreement, a move aimed at shifting more vehicle production and supply chain activity to the U.S., according to The Wall Street Journal. The proposal would require at least 50% of a vehicle’s components and materials, measured by value, to originate in the U.S. for the vehicle to qualify for reduced t…
According to insiders, under the North American Free Trade Agreement, the US is calling for a higher US share of car parts. For industry, this means a realignment of the supply chain.
Trump Team Eyes 50% US-Made Auto Parts Rule for USMCA
The proposal would mark a significant shift in the USMCA, the trade pact President Donald Trump negotiated and signed in 2020. While the agreement currently requires 75% of a vehicle's content to come from North America, it does not mandate a specific percentage from the United States.
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