The article examines proposed USMCA changes that would require substantially more North American and US content in vehicles, potentially reshaping automaker sourcing, production, and pricing decisions.

Key Takeaways:

• US negotiators are seeking an 82 percent North American content threshold for qualifying vehicles, with 50 percent of a vehicle's value produced specifically in the US.
• DuBois said automakers would have to weigh the cost of tariffs against moving more engine, transmission, component, and assembly production to the US.
• DuBois said the forthcoming 2026 Made in America Auto Index includes 109 vehicles estimated to have at least 51 percent US content, down from 123 in 2025, with Tesla models making up most of the top 10.

“The union is going to love it,” DuBois said of the proposed higher US content standards. “Automotive dealers are not, because of the affordability issue. Automakers would have to deal with it, and though Tesla still sources a lot from Mexico, Tesla's not going to mind it.”

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