AMU
April 11, 2025
The Value Trap: USMCA compliance paradoxes
Written by Nicholas Bell
Canada placed a 25% tariff on US automobiles that fail to meet provisions of the United States-Mexico-Canada (USMCA) agreement in response to Trump’s recent aluminum tariff.
Under the United States-Mexico-Canada Agreement (USMCA), automakers must source 75% of regional value content of passenger vehicle from the region and use 70% USMCA-produced aluminum content (and separately, steel) or face a 25% duty for non-compliance.
