Trump Administration to Propose Changes to USMCA for Auto Parts Sourcing
The Trump administration is anticipated to propose a change to the U.S.-Mexico-Canada Agreement, or USMCA, that would mandate that half of the components and materials in an automobile come from U.S. sources in order to qualify for reduced tariffs under the deal, the Wall Street Journal's Gavin Bade, Santiago Perez, and Christopher Otts reports. The requirement would greatly increase the number of U.S. components required in cars made under the pact, measured by the dollar value of the parts, the authors say, noting that the USMCA currently requires three quarters of a vehicles to come from North American sources, but no U.S.-specific requirements. Publicly traded companies in the space include Ford (F), General Motors (GM), Honda (HMC), Lucid Group (LCID), Mercedes-Benz (MBGYY), Nissan (NSANY), Rivian (RIVN), Stellantis (STLA), Tesla (TSLA), Toyota (TM) and Volkswagen (VWAGY).
