A car hauler heading for Detroit, Michigan, drives on the lane to Ambassador Bridge in Windsor, Ontario, Canada
Image Source: 
REUTERS/Rebecca Cook

Caroline Freund (PIIE)

The Trump administration is reportedly considering a demand that vehicles imported from Canada or Mexico have 35 to 50 percent US content to qualify for duty-free access under the North American Free Trade Agreement (NAFTA). Such a requirement would make vehicles produced in North America less competitive in global markets, hampering US manufacturing in particular while driving production in this sector outside the region.

Photo Credit: 
REUTERS/Rebecca Cook