The amendments proposed to the USMCA impose stricter origin rules, with the regional content localization rate raised to 82%.
The administration of U.S. President Donald Trump proposed raising the threshold for locally sourced content required for cars and trucks manufactured in North America from 75% to 82% in order to benefit from preferential trade treatment under the United States-Mexico-Canada Agreement (USMCA).
One of the important points of this new proposal is that half of the vehicle’s value should be manufactured directly in the United States. This proposal was presented during bilateral negotiations between the United States and Mexico aimed at revising a regional trade agreement, with Canada not currently participating in these negotiations.
Washington says the objective is to reduce the trade deficit, strengthen domestic supply chains, and prevent third countries from profiting from the benefits of the USMCA. The United States and Mexico will continue negotiations in mid-June.
This measure by the U.S. government comes as it maintains a 25% tariff on vehicles and spare parts from Canada and Mexico, as well as a 50% tariff on steel, aluminum, and copper from those two countries.
Currently, vehicles imported from Japan, South Korea, the European Union (EU) and the United Kingdom benefit from lower tariffs (about 10% to 15%) than those applied to vehicles from Canada or Mexico.
