New North American Trade Deal Will Add to Costs, Automakers Warn
- Car-content rules in USMCA seen raising costs for complying
- Some production may move to U.S., one industry official says
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Stricter car-content rules in a new U.S. trade deal with Canada and Mexico will add to costs for automakers and their suppliers, industry representatives warned at a hearing on the economic consequences of the agreement.
Industry lobbyists said complying with the complex new rules in the U.S.-Mexico-Canada Agreement, the successor to Nafta, will be a challenging task that could disrupt supply chains and eliminate jobs. One official at the public hearing, though, acknowledged the new deal may lure production back to the U.S. over the long term, as President Donald Trump wants.