The Trump administration wants to dictate how and where global auto companies make cars and parts to secure duty-free treatment under the new NAFTA.
in some politically important swing states going into Trump’s 2020 reelection bid.
Officials from Lighthizer’s office for months have been meeting with auto-industry executives to talk through the firms’ transition plans. Those would allow for a grace period of as many as five years before they have to comply fully with the new rules in order to ship products across North American borders duty-free.
Another worry, the people said, is how the White House would treat companies participating in contentious litigation on California emissions rules. The industry is split on the matter, with General Motors Co., Toyota Motor Corp. and Fiat Chrysler planning to side with the Trump administration over their rivals.
But compliance with USMCA is much more difficult for auto companies because of the more stringent rules that govern whether a car or auto parts qualify as made in North America and can cross borders without tariff.
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