Washington wants more “American” cars — and Americans themselves might be the first to pay for it. According to Reuters, Ford, General Motors and Stellantis are preparing to push back against part of a proposed overhaul of the USMCA trade deal: two automakers estimate the changes could add at least $2 billion a year in costs for each company.
Right now, a passenger vehicle needs at least 75% North American-sourced content to qualify for USMCA’s preferential treatment. That’s the official requirement under the trade agreement between the U.S., Canada and Mexico. Washington, according to Reuters’ sources, is discussing something far tougher: a vehicle would need at least 50% U.S.-made content specifically, and the existing 75% North American threshold could climb too. But none of that is a locked-in rule yet.
USTR isn’t denying the talks — they’re happening. What hasn’t been nailed down in official materials is that specific 50% figure. The next round of U.S.-Mexico negotiations is set for September 2026. For Detroit, this piles on top of tariffs already in place: GM projects gross tariff-related expenses of $2.5–3.5 billion in 2026.
Here’s the paradox industry group AAPC keeps pointing to. Vehicles from Japan, South Korea and the EU, thanks to separate trade agreements, can enter the U.S. at a combined rate of around 15%. For Japanese and Korean cars, that rate is officially locked in on the American side. Which means a vehicle GM or Ford builds in North America out of parts from several countries could end up facing a more complicated web of calculations and duties than a fully imported car from a foreign rival.
That’s exactly why the American automakers aren’t fighting localization itself: AAPC supports keeping USMCA intact, just with targeted changes and enough transition time. This isn’t a done deal on higher prices — it’s a fight over what the future rules will look like. But that extra $2 billion per company is a pretty clear signal of why Detroit is worried the push for a more “American” car could end up being paid for by the very people buying them.
