{"id":150,"date":"2026-05-29T19:48:57","date_gmt":"2026-05-29T19:48:57","guid":{"rendered":"https:\/\/officemovingamerica.com\/?p=150"},"modified":"2026-05-29T19:48:57","modified_gmt":"2026-05-29T19:48:57","slug":"trump-administration-wants-to-raise-north-american-auto-content-to-82-with-half-from-us","status":"publish","type":"post","link":"https:\/\/officemovingamerica.com\/?p=150","title":{"rendered":"Trump Administration Wants to Raise North American Auto Content to 82%, With Half From US"},"content":{"rendered":"
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By David Shepardson, Emily Green, Nora Eckert and David Lawder<\/p>\n<\/div>\n

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WASHINGTON\/MEXICO CITY, \u2060May \u206029 (Reuters) – The Trump administration wants to \u2060increase the level of regional content in North American-built vehicles to 82% to qualify for \u200bpreferential treatment under the U.S.-Mexico-Canada Agreement on trade, with 50% of that value produced in the United States, four people familiar with \u200cthe U.S. negotiating position said.<\/p>\n

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The expansive demand, \u200cunveiled during this week’s U.S.-Mexico negotiations over revisions to the six-year-old USMCA in Mexico City, has no provision for counting \u2060any parts content \u2060from Canada in the totals. Canada is not represented in the Mexico City talks, \u200bthe sources said.<\/p>\n<\/div>\n

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The shift, if accepted, would be a major break from the current USMCA, which requires that 40% of the “core parts” value of North American passenger vehicles be produced in high-wage jurisdictions, effectively the U.S. or Canada.<\/p>\n<\/div>\n

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That threshold is now 45% for pickup trucks. Overall, \u200bvehicles built in North America currently must have 75% regional content to qualify for preferential treatment under USMCA.<\/p>\n<\/div>\n

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The U.S. \u2060demand \u2060and lack of accommodation for \u2060Canada are consistent with \u200bTrump administration officials’ frequent questioning of why Canada should export vehicles and auto parts to the U.S. and voicing \u200ba desire to move that production \u2060to the U.S.<\/p>\n<\/div>\n

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Auto industry officials said that there was a high likelihood that U.S. Trade Representative Jamieson Greer would seek to negotiate the new rules of origin with Mexico and then present them to Canada as a take-it-or-leave-it proposition. Greer has been evasive about whether USMCA would continue as a trilateral trade pact or be broken into separate bilateral agreements.<\/p>\n

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Reuters first reported on Thursday \u2060that U.S. negotiators were pursuing a U.S.-specific automotive content requirement. Trade officials briefed industry lobbyists on \u2060the proposal for 82% regional content, but it was not immediately clear how that figure, or the 50% U.S. value requirement, would be calculated.<\/p>\n<\/div>\n

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Trade officials also have proposed raising regional value content for heavy trucks to 75% from 70% in the current USMCA, a source familiar with the U.S. proposals said.<\/p>\n<\/div>\n

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USMCA was launched in 2020 to replace the 1994 North American Free Trade Agreement, maintaining a duty-free trade zone that underpins nearly $1.6 trillion in annual trilateral trade. But President Donald Trump last year imposed 25% tariffs on Canadian and Mexican vehicles and components, with 50% duties on steel, aluminum and copper from those countries.<\/p>\n<\/div>\n

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Greer has said that he intends to \u2060keep some level of tariffs on key Mexican and Canadian goods in the revised trade pact. But the two partners may get some preferential tariff rates. Currently, vehicles from Japan, South Korea, the European Union and Britain can be imported at lower rates than from Canada or Mexico.<\/p>\n<\/div>\n

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(Reporting by David Lawder and Emily Green in \u200bMexico City, David Shepardson and Nora Eckert in Washington and Kalea Hall in Detroit; Writing \u200bby David Lawder; Editing by Mike Colias and Aurora Ellis)<\/p>\n

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Copyright 2026 Thomson Reuters<\/b>.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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