US perspective on USMCA, auto rules, and China (with David Westin)

Does President Trump agree that this is the most important time for USMCA?

David Westin

Kelly Ann Shaw

The North American trading relationship is the biggest on the planet and incredibly important. President Trump has always been skeptical of USMCA. He thought it was an improvement on NAFTA but insisted on the sunset provision (6-year review) so we wouldn't be stuck with it for 25 years like NAFTA.

At the end of the day, everybody appreciates how important this economy and this North American trading system is.

To what extent might the Trump administration use the USMCA review to create 'Fortress North America' against Chinese auto exports?

David Westin

Kelly Ann Shaw

President Trump sees it as a zero-sum game for the auto industry. The administration wants very aggressive changes to rules of origin with domestic content requirements, meaning some of the car must be made in the US to qualify for USMCA, and almost none should be made with Chinese components. This protects the North American industry from Chinese inputs.

It's a negotiation, so we'll see where this lands, but the goal is to bolster the domestic industry and protect against Chinese inputs.

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