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US or Mexico? Japan's auto industry torn over USMCA

Stricter content rules force suppliers in region to choose between the two countries

Companies will need to procure 75% of its parts in the U.S., Mexico or Canada or face a 2.5% tariff when shipping them to the U.S. (Photo by Keiichiro Asahara)

TOKYO -- Stringent content and wage rules under the new North American trade deal have forced hundreds of Japanese auto suppliers and material makers operating in the region to reevaluate supply chains, including whether to base future production in the U.S. or in Mexico.

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