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

The Trump team wants cars made in North America to use more parts from the region. They aim for 82 % of a car’s value to come from North America. Half of that must be made in the United States. The plan was announced at talks in Mexico City about changing the US‑Mexico‑Canada trade deal. Canada is not part of these talks, so the proposal does not mention Canadian parts.Under the current agreement, 40 % of a car’s core parts must be made in high‑wage places like the U. S. or Canada. For trucks, that number is 45 %. All cars must have at least 75 % North American content to get special trade treatment. If the new rules are adopted, they would replace these old limits with a higher overall requirement and a focus on U. S. production. This change could shift the balance of where parts are made in North America.