The US is proposing strict new rules aimed at squeezing Chinese parts out of North America’s cars in bruising trade talks with Mexico.As part of the proposals, Donald Trump’s administration is demanding that more car parts — including electronics, which are typically imported from China — be sourced in North America for the fully assembled vehicle to qualify for duty-free treatment, said people familiar with the talks.
That would make it harder for carmakers to import parts from China while also claiming duty-free treatment for vehicles under a trade agreement that aims to reward companies for building them in the US, Mexico or Canada.
The talks come as the three countries look set to miss a July 1 deadline for deciding whether to renew the 2020 USMCA trade agreement for 16 years or enter into annual reviews.