Lates News

date
28/04/2026
According to sources familiar with the matter from The Wall Street Journal, some car manufacturers have warned the Trump administration that if the US-Mexico-Canada Agreement (USMCA) is not renewed or if it is weakened, they are considering withdrawing their cheapest car models from the US market. Nissan, Hyundai, Toyota, and a few other car manufacturers are still providing small and economical sedan models to American consumers. Models like the Honda Civic and Toyota Corolla are produced in the US but rely on parts from the three North American countries. Trump signed the USMCA in 2020, providing tariff-free treatment for cars mainly made with components from the US, Mexico, or Canada. However, the car tariffs implemented by Trump in his second term have disrupted these supply chains, imposing a 25% tariff on non-US parts in vehicles that originally met the conditions for tariff-free treatment under the USMCA. Sources say that if the USMCA no longer exists or if the new agreement does not significantly reduce tariffs on North American cars and components, some foreign car companies may not be able to continue producing and selling low-priced models in the US. This information has been relayed to Trump's economic advisers.