TRADE NEGOTIATIONS
How Trump's call to source steel in US will disrupt car industry
Arlington, Virginia — The Trump administration is demanding the use of North American-made steel, aluminium, copper and plastic resins in cars and trucks sold under North American Free Trade Agreement (Nafta) rules, as it seeks to give US industry a boost. People briefed on the matter said US negotiators issued the proposal, which could force vehicle makers to shift sourcing of some components to North America from Asia, during talks on Friday to overhaul Nafta. It calls for the inclusion of steel, aluminium and other raw materials on a so-called Nafta tracing list for car parts, according to the sources, referring to the mechanism by which the regional content level of cars, trucks and large engines is monitored and verified under the trade agreement. The list would be greatly expanded under the US proposal to cover a vast and complex web of automotive components, essentially eliminating the concept of "deemed originating", under which parts not listed get a free pass to tariff-fre...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.