The Trump administration wants to dictate how and where global auto companies make cars and parts to secure duty-free treatment under the new Nafta — in its most direct intervention yet to manage trade and production, according to people familiar with the effort.
The issue is being discussed between Trump administration officials, congressional staff, and domestic and foreign auto makers in the context of the legislation that lawmakers will vote on for the trade deal to take effect. The White House wants specific language that would allow it to unilaterally administer the production rules for companies.
The U.S.-Mexico-Canada Agreement, signed by President Donald Trump and his counterparts in November 2018, is still awaiting approval from the U.S. Congress. The White House has touted the new production rules for the auto sector as one area of the deal that’s most beneficial to America.