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‘We can’t afford to do what Mexico can do’: Can Trump play Canada and Mexico against each other?

WASHINGTON, D.C. — Mexican leaders are weighing a U.S. proposal to revise the Canada-U.S.-Mexico Agreement’s (CUSMA) auto rules of origin — changes that could force a major restructuring of North America’s tightly integrated auto supply chains.

Last week, U.S. Trade Representative Jamieson Greer’s team told their Mexican counterparts that U.S. President Donald Trump’s administration wants to raise the overall required North American parts threshold from 75 to 82 per cent and, more controversially, require that 50 per cent of all components originate specifically in the United States.

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