Britannica
Sources used in this answer
What percentage of a tariff-exempt vehicle's components had to be made in North America under the USMCA?
Created from Britannica articles
using AI.
AI can make mistakes, so verify using Britannica articles.
North American Free Trade Agreement
(From left) Mexican Pres. Carlos Salinas de Gortari, U.S. Pres. George H.W. Bush, and Canadian Prime Minister Brian Mulroney meeting to initial the North American Free Trade Agreement in San Antonio, Texas, October 7, 1992.
Under the United States–Mexico–Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA) in 2020, a car or truck must have 75 percent of its components manufactured in North America to be exempt from tariffs.12
This requirement represents an increase from the 62.5 percent threshold that was mandated under the original NAFTA provisions.12