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 tariffs under the trade pact. The current USMCA requires 75% North American content but does not include a U.S.-specific threshold.
The administration is also expected to seek an increase in the overall North American content requirement beyond the current 75% level.
Supporters say the measure could boost U.S. manufacturing jobs and benefit labor unions, while automakers are expected to oppose the requirement, arguing it would be difficult to meet, particularly for vehicles assembled in Mexico.
Trade talks between U.S. and Mexican officials began this week in Mexico City, with additional rounds planned in Washington and Mexico later this summer.
The Wall Street Journal has the full story.
