The Trump administration is proposing new automotive content requirements under the United States-Mexico-Canada Agreement (USMCA) that would mandate vehicles contain at least 50% American-made components and materials.

According to sources familiar with the negotiations, the administration wants to raise the overall North American automotive content requirement to 82%, with half of that specifically coming from U.S. sources. The current USMCA does not include a U.S.-specific content requirement.

The proposal represents a significant shift in trade policy affecting the automotive industry, which has developed integrated supply chains across the three North American countries. Auto manufacturers would need to adjust their sourcing and production strategies to meet the new thresholds.

The timing of the proposal comes as the administration continues to prioritize domestic manufacturing and has taken various measures aimed at reducing dependence on foreign suppliers. The automotive sector has been a particular focus given its economic importance and employment impact across multiple states.

Implementation of such requirements would likely face challenges from automakers who have invested heavily in cross-border production facilities and supplier networks optimized for efficiency rather than national content requirements.