According to Reuters on Thursday (Aug. 13), General Motors, Ford, and Stellantis warned the Trump administration that stricter rules-of-origin requirements under proposed North American trade agreement revisions could increase costs by at least $2 billion per company annually. The controversial proposal would require vehicles to contain 50% U.S.-made components to qualify for lower tariffs, while raising the North American manufacturing threshold from 75% to potentially higher levels.
The Detroit automakers face a competitive disadvantage compared to Japanese, South Korean, and European competitors, which pay only a 15% uniform tariff on U.S. imports. In contrast, Mexican and Canadian imports face approximately 25% tariffs. The Big Three currently absorb billions in tariff-related costs; GM estimates $2.5–3.5 billion this year, while Ford projects approximately $1 billion in 2026 tariff impacts.
