U.S., Mexico Launch Trade Talks Seeking Mandatory American Auto Content

U.S. and Mexican negotiators began formal talks on May 28 to revise the U.S.-Mexico-Canada Agreement, with Washington demanding a mandatory minimum share of U.S.-specific content in vehicles built in Mexico, two sources told Reuters. The proposal, outlined in draft texts, would add to the existing 75% regional value requirement for preferential market access. The U.S. also wants to expand the list of “core parts” to include major electronics modules now largely sourced from Asia, aiming to shift that production. Canada is excluded from the current three-round bilateral process, which runs through late July, with the U.S. planning to present any deal as a take-it-or-leave-it offer to Ottawa. The push comes as U.S. tariffs of 25% on auto imports and higher levies on steel and aluminum have effectively ended three decades of duty-free North American trade. The highly integrated regional economy underpins nearly $1.6 trillion in annual trilateral commerce, making the outcome critical for automakers including General Motors, Ford and Stellantis.