WASHINGTON/MEXICO CITY – The Trump administration is pushing for stricter manufacturing requirements in the North American trade agreement, seeking 82% regional content in vehicles to qualify for trade benefits, with half of that production coming from American facilities, according to four sources with knowledge of the negotiations.
This proposal was presented during recent trade discussions between the United States and Mexico in Mexico City, focusing on changes to the six-year-old U.S.-Mexico-Canada Agreement. Notably absent from these bilateral talks is Canada, and the new proposal contains no requirements for Canadian content, sources indicated.
The suggested changes would represent a significant departure from existing USMCA rules. Currently, the agreement mandates that 40% of passenger vehicle “core parts” value come from high-wage areas, essentially the United States or Canada, with pickup trucks facing a 45% requirement. The overall regional content threshold stands at 75% for North American vehicles to receive preferential trade status under the current USMCA framework.
