Trump Administration Pushes for 50% US Content Requirement in USMCA Talks
The Trump administration is advocating for a significant change in the United States-Mexico-Canada Agreement (USMCA) by demanding that 50% of vehicle content originate from the United States. This proposal was introduced during bilateral talks in Mexico City, marking the first formal USMCA Joint Review negotiating round. The current framework requires vehicles built in North America to meet a 75% regional content threshold, with 40% of core parts value coming from high-wage jurisdictions, either the US or Canada. The new demand would increase the overall threshold to 82% and impose a country-specific floor, which has not been part of USMCA before. Canada is not directly involved in these talks, and US Trade Representative Jamieson Greer is expected to negotiate revised rules with Mexico before presenting them to Canada.