Mexico-U.S. deal includes Mexican auto export cap - sources

[Eugene]

Source: Reuters

BUSINESS NEWS AUGUST 28, 2018 / 7:09 PM / UPDATED AN HOUR AGO

Exclusive: Mexico-U.S. deal includes Mexican auto export cap - sources

David Shepardson, Ana Isabel Martinez
7 MIN READ

WASHINGTON/MEXICO CITY (Reuters) - The proposed U.S.-Mexico trade deal would allow President Donald Trump to impose punitive “national security” tariffs of up to 25 percent on imports of Mexican-made cars, sport utility vehicles and auto parts above certain volumes, auto executives and sources said on Tuesday.

The United States and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA), pressuring Canada to accept new auto trade and dispute settlement rules to remain part of the three-way pact.

A previously unreported side agreement between the two countries would allow the United States to pursue national security tariffs on annual Mexican car and SUV imports of over 2.4 million vehicles, a number that significantly exceeds last year’s total imports. The side deal would allow national security levies on auto parts imports above a value of $90 billion per year on the same grounds.

The administration in the coming weeks plans to announce the results of a probe into whether imports of autos and parts pose a national security risk.

-snip-

Read more: https://www.reuters.com/article/us-trade-nafta-autos-mexico-exclusive/exclusive-mexico-u-s-deal-includes-mexican-auto-export-cap-sources-idUSKCN1LD2PK

[Iliyah]

1. Sounds like it would be more costly for

consumers. Prices are rising for the working middle class.