WASHINGTON/MEXICO CITY ¨C U.S. President Donald Trump¡¯s administration issued a sweeping demand to Mexico to raise the level of regional content in North American-built cars and trucks to 82% to 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.
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.
There was no provision for counting any parts content from Canada in ?the revised totals. The shift, if accepted, would be a major break from the current USMCA, which requires 75% regional content to qualify for preferential tariff treatment.
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