Trump Administration Pushes for 82% North American Auto Content in USMCA Talks, Reports Reuters

The Trump administration has called for a significant change to automotive content rules under a revised US-Mexico-Canada Agreement, demanding that 82% of a vehicle's value originate from North America to qualify for preferential trade access, up from the current 75% threshold.

Of that figure, 50% would need to be produced specifically in the United States. The proposals were put to automakers during two days of bilateral talks in Mexico City, which concluded on Friday.

Canada was excluded from the negotiations entirely, and the US proposals contain no provision for counting Canadian parts content toward the revised totals. Industry officials suggest that the US Trade Representative, Jamieson Greer, may negotiate new rules of origin with Mexico before presenting them to Canada.

The current USMCA requires that 40% of core parts value, covering engines, transmissions, major body stampings, and EV batteries, be produced in high-wage jurisdictions, effectively the US or Canada. That rises to 45% for pickup trucks. It was not immediately clear how the proposed 50% US-specific threshold would be calculated.

The US also proposed raising regional content requirements for heavy trucks to 75%, from the current 70%, and wants to incorporate a stricter calculation method for high-value components, reversing the outcome of a 2023 dispute panel ruling that allowed greater use of non-North American parts.

The US Trade Representative's office said discussions also covered steel and aluminum trade and economic security provisions aimed at limiting the influence of China and other third-party nations within USMCA supply chains.

No talks with Canada have been scheduled.