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Globe says Honda, rivals see USMCA meetings begin

2026-06-01 07:04 ET - In the News

See In the News (C-HNDA) Honda CDR (CAD Hedged)

The Globe and Mail reports in its Saturday edition that the United States is demanding that all North American-made autos contain at least 50 per cent U.S. content. The Globe's Adrian Morrow writes that American and Mexican negotiators have begun reviewing the U.S.-Mexico-Canada Agreement, with the U.S. planning two additional rounds of talks that exclude Canada. Intergovernmental Affairs Minister Dominic LeBlanc, meanwhile, is planning a trip to Washington soon. U.S. officials are insisting that at least half of the materials in vehicles made in the USMCA zone must originate from the U.S. to qualify for preferential tariff treatment, said Pedro Casas, chief of the American Chamber of Commerce of Mexico. As well, the U.S. seeks to set the total North American content requirement at 82 per cent. USMCA mandates that 75 per cent of auto content originates from North America. It requires that 40 to 45 per cent of vehicle components be produced in factories paying an average wage of $16 (U.S.) per hour, which favours higher-wage countries like the U.S. and Canada over lower-income Mexico. The fact that the U.S. is now laying out formal bargaining positions represents a new, more serious phase of talks, said Mr. Casas.

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