- The U.S.-Mexico-Canada Agreement (USMCA) could lead to automakers deciding to move production to the United States.
- Under the USMCA’s rules of origin, 75 percent of auto content must be produced in North America for the finished car to be considered a North American product and therefore be subject to agreement’s tariff exemptions.
- Current NAFTA rules stipulate that only 50 percent of a car’s value is required to be produced in North America to be subject to the agreement’s free trade protections.