North American Cars: New Rules to Boost U. S. Production

The Trump team is proposing a shift toward locally sourced automotive components. Their goal: 82 % of a car’s value should originate from North America, with at least half of that coming from the United States.

• Where it was announced
  The plan emerged during talks in Mexico City about revising the US‑Mexico‑Canada trade agreement. Canada is not a participant in these discussions, so Canadian parts are excluded from the proposal.

• Current rules
• Core parts: 40 % must come from high‑wage regions (U.S. or Canada).
• Trucks: 45 % required from such regions.

• Overall content: All vehicles need at least 75 % North American material to qualify for special trade treatment.

• Proposed changes
• Replace the existing limits with a higher overall requirement.
• Emphasize U.S. production, potentially reshaping the North American parts supply chain.

These adjustments could significantly alter where automotive components are manufactured across the continent.