{"id":501,"date":"2026-05-30T16:10:43","date_gmt":"2026-05-30T16:10:43","guid":{"rendered":"https:\/\/reliablemovingcrews.com\/?p=501"},"modified":"2026-05-30T16:10:43","modified_gmt":"2026-05-30T16:10:43","slug":"trump-administration-wants-to-raise-north-american-auto-content-to-82-with-half-from-us","status":"publish","type":"post","link":"https:\/\/reliablemovingcrews.com\/?p=501","title":{"rendered":"Trump administration wants to raise North American auto content to 82%, with half from US"},"content":{"rendered":"<div><div><div><ul><li>Summary<\/li><\/ul><\/div><div><\/div><\/div><div>WASHINGTON\/MEXICO CITY, May 29 (Reuters) &#8211; The Trump administration issued a sweeping demand to Mexico to raise the level of regional content in North American-built cars and trucks to 82% \u200cto qualify for preferential trade deal access, with 50% of that value produced in the United States, four people familiar with the U.S. negotiating stance said on Friday.<\/div><div>The proposed new thresholds were revealed to automakers during two days of bilateral talks to revise the U.S.-Mexico-Canada Agreement on trade that concluded on Friday. Canada was excluded from the negotiations in Mexico City.<\/div><div>There was no provision for counting any parts content from Canada in the revised \u200btotals.<\/div><div>The shift, if accepted, would be a major break from the current USMCA, which requires 75% regional content to qualify for preferential tariff treatment.<\/div><div>USMCA also now requires that \u200b40% of the &#8220;core parts&#8221; value of North American passenger vehicles be produced in high-wage jurisdictions, effectively the U.S. or Canada. That threshold, covering engines, \u2060transmissions, major body parts and EV batteries, is 45% for pickup trucks.<\/div><div>The U.S. demand and lack of accommodation for Canada are consistent with Trump administration officials&#8217; frequent criticism of Canada&#8217;s exports of vehicles \u200band auto parts to the U.S. and requests to move that production to the U.S.<\/div><div>Auto industry officials said that there was a high likelihood that U.S. Trade Representative Jamieson Greer would seek to \u200bnegotiate 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.<\/div><div>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.<\/div><div>But President Donald Trump last year imposed \u200b25% tariffs on Canadian and Mexican vehicles and components, with 50% duties on steel, aluminum and copper from those countries.<\/div><h2>COUNTING CARS, PARTS<\/h2><div>Reuters first reported on Thursday that U.S. negotiators were pursuing \u200ba U.S.-specific automotive content requirement. U.S. trade officials briefed industry lobbyists on the proposal for 82% regional content, but it was not immediately clear how that figure, or the 50% U.S. value requirement, would be calculated.<\/div><div>USTR \u200calso has proposed raising \u2060regional value content for heavy trucks to 75% from 70% in the current USMCA, a source familiar with the U.S. proposals said. The source added that the U.S. also wants to incorporate its stricter calculation method for the local content of high-value components after a dispute panel announced in January 2023 that Mexico and Canada won in a ruling  that effectively allows more non-North American parts in those components. The U.S. trade agency said in a statement that the Mexico City negotiating round also covered steel and aluminum trade and economic security provisions, which are aimed \u200bat keeping China and other countries from taking \u200badvantage of USMCA.<\/div><div>&#8220;The United States concluded discussions \u2060with the goals of reducing the trade deficit with Mexico and strengthening American supply chains,&#8221; USTR said, adding that both countries will also seek to enhance regulatory compatibility on sectors including medical devices, pharmaceuticals and cosmetic products.<\/div><h2>MORE TALKS, BUT NOT FOR CANADA<\/h2><div>A Mexican official \u200bfamiliar with the negotiations said there were &#8220;no surprises&#8221; in the Mexico City talks and that there was &#8220;not even a hint&#8221; of a \u200bsuggestion from U.S. officials about \u2060pulling out of the accord.<\/div><div>USTR said that the U.S. and Mexico will continue their talks on June 16-17 in Washington, D.C., focused on agriculture and &#8220;a level playing field.&#8221; USTR has long disputed Mexico&#8217;s failure to allow American firms to invest in its state-dominated energy sector.<\/div><div>A third round is scheduled for the week of July 20 in Mexico City, but no talks have been scheduled \u2060for Canada.<\/div><div>Greer has \u200bsaid that he intends to keep some level of tariffs on key Mexican and Canadian industrial goods and metals in \u200bthe 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 those from Canada or Mexico.<\/div><div><address><div><div><noscript>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"120\" height=\"120\" alt=\"Emily Green\" class=\"wp-image-499\" src=\"https:\/\/reliablemovingcrews.com\/wp-content\/uploads\/2026\/05\/cd0a5365ca8ed901d72c53a316c09b76.avif\"\/><\/figure>\n<\/noscript><\/div><div>Emily Green<\/div><\/div><div><ul><li><span><div><svg><title>Email<\/title><\/svg><\/div><\/span><\/li><li><span><div><svg><title>X<\/title><\/svg><\/div><\/span><\/li><li><span><div><svg><title>Linkedin<\/title><\/svg><\/div><\/span><\/li><\/ul><\/div><\/address><address><div><div><noscript>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"120\" height=\"120\" alt=\"Nora Eckert\" class=\"wp-image-500\" src=\"https:\/\/reliablemovingcrews.com\/wp-content\/uploads\/2026\/05\/2f020a8a3b735a532e82aee0523bb37b.avif\"\/><\/figure>\n<\/noscript><\/div><div>Nora Eckert<\/div><\/div><div><ul><li><span><div><svg><title>Email<\/title><\/svg><\/div><\/span><\/li><li><span><div><svg><title>X<\/title><\/svg><\/div><\/span><\/li><li><span><div><svg><title>Linkedin<\/title><\/svg><\/div><\/span><\/li><\/ul><\/div><\/address><\/div><\/div><p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=497\">Social media companies to pay $27 million to settle Kentucky school district\u2019s lawsuit, records show<\/a><\/p><p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=494\">Austrian protesters shut vital motorway connecting Germany to Italy<\/a><\/p><p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=492\">BP\u2019s ousted chairman Manifold clashed with director over deal talks, WSJ reports<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>The Trump administration issued a sweeping demand to Mexico to raise the level of regional content in North American-built cars and trucks to 82% \u200cto qualify for preferential trade deal access, with 50% of that value produced in the United States, four people familiar with the U.S. negotiating stance said on Friday.<\/p>\n","protected":false},"author":1,"featured_media":498,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[98,99,100],"class_list":["post-501","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-autos-transportation","tag-regulatory-policy","tag-workforce"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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