Chad P. Bown (PIIE)
After a year of tussling with Canada and Mexico over trade issues, President Donald Trump has announced a tentative deal with Mexico to replace the much-maligned North American Free Trade Agreement (NAFTA). Many important details are unknown, in part because they remain to be negotiated. But the centerpiece of the agreement—a set of new and complex rules constraining trade in the automobile industry—could be problematic for the US auto sector, and for Mexico and Canada as well. At the least, the new rules will raise the price of autos for US consumers.