US Launches ITC Probe into USMCA Automotive Rules of Origin

The U.S. International Trade Commission is investigating the automotive rules of origin under the USMCA agreement. This includes assessing their impact on the U.S. economy, competitiveness, and technology. The investigation will examine if alterations might be needed to strengthen industrial goods rules.

The U.S. International Trade Commission has launched an inquiry into the automotive rules of origin stipulated by the United States-Mexico-Canada Agreement (USMCA) as of Thursday. This probe aims to assess the rules' effects on the U.S. economy, competitiveness, and their alignment with recent technological advancements.

The USMCA mandates a 75% North American content requirement for car manufactures to secure free-trade status, fundamentally altering supply chains. This agreement demands 40% of a passenger car's components be manufactured in the U.S. or Canada, impacting several key parts like engines and chassis. For pickup trucks, the requirement is 45%.

With a public hearing slated for later this year, the ITC plans to release its findings by July 2027. Notably, major automakers advocate for an extension of the USMCA, citing its essential role in American auto production, while Stellantis highlights competitive challenges under existing export tariffs.