USA negotiators proposed new auto rules of origin requiring 50% of a North American vehicle’s value to be produced in the USA, Auto123 reported on June 1, 2026.
The proposal
- Required regional content would rise from 75% to 82%. Half of the total value would have to come from the USA specifically.
- The demands were presented in talks with Mexico in Mexico City. Canada was not part of that round, and no provision would count Canadian parts toward the thresholds.
- USMCA and NAFTA have never had a country-specific content floor before.
- The mandatory USMCA joint review is due by July 1, 2026. Without agreement, the pact moves to annual reviews and could expire in 2036.
Why it matters for Made in USA
A 50% USA-content rule would tie trade benefits to USA parts and labor, not just North American assembly. It would push more engine, transmission and battery work into USA plants. Car buyers can already check USA and Canadian parts content on the American Automobile Labeling Act sticker. Related: Toyota’s USA-made models shipping to Japan.
FAQ
What is the proposed USA content rule?
50% of a vehicle’s value would have to be made in the USA, within a higher 82% regional content requirement.
Is it final?
No. It is a USA proposal in USMCA talks, which face a July 1, 2026 joint review deadline.
How would it affect Canada?
The proposal would not count Canadian parts toward the thresholds, which experts warn could hurt Canada’s auto sector.
Source & credit
Originally reported by Auto123, June 1, 2026: U.S. wants 50% Made in USA content for North American Cars