US Pushes for Higher US-Made Content in North American Vehicles

The Trump administration aims to increase US-made content in North American vehicles to 82% to receive preferential treatment under the USMCA. This proposal, presented during US-Mexico talks, excludes Canada and suggests a shift from the current requirement of 40% high-wage content in core vehicle parts.

The Trump administration is advocating for a significant increase in the percentage of U.S.-made content in North American-assembled vehicles, proposing a rise to 82% to qualify for preferential trade treatment under the USMCA. Notably, 50% of this content value should be produced in the United States, according to sources familiar with the negotiations.

This proposal was revealed during the U.S.-Mexico negotiations in Mexico City, marking a potential change in the USMCA provisions. The talks notably excluded Canada, which is not represented at the current discussions, as indicated by individuals close to the matter.

If implemented, the proposal would be a major departure from the existing USMCA requirements. Currently, 40% of the core parts in North American passenger cars must be produced in high-wage areas, like the U.S. or Canada, to meet the standards, while pickup trucks maintain a slightly higher threshold of 45%.