Steel, Auto Sectors Eye Rules of Origin

Representatives from the U.S. auto and steel industries are working on a joint proposal to address changes in the rules of origin for steel used in vehicle production. The Trump administration and domestic steelmakers would like to close “loopholes” that allow foreign steel producers to take advantage of NAFTA rules. Currently, automobile content must be of at least 62.5 percent North American origin to qualify for tariff exemptions.

The two sectors are trying to reach a compromise that will protect domestic steel producers without jeopardizing the competitiveness of North American automakers. Discussions are going slowly, but sources quoted by Inside U.S. Trade are confident that all three countries can reach an agreement.