Detroit's automakers plan to argue to the Trump administration that certain proposals floated as part of an update to the US-Mexico-Canada Agreement could cost them billions of dollars and make them less competitive with foreign rivals, Reuters reported Thursday, citing two automakers' estimates.
Among the most contentious proposals, is Washington's demand that, in order to qualify for a lower tariff, a vehicle must contain at least 50% US-made content, the report said.
That condition, pared with another proposal to increase overall North American vehicle content from the current 75% level, would add at least $2 billion in costs annually for each Detroit automaker, the report said, citing the estimates.
General Motors (GM), Ford (F) and Stellantis (STLA) didn't immediately reply to requests for comment from.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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