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.
Under the US-Mexico-Canada Agreement, which took effect on July 1, companies must produce 75% of its parts by value in the U.S., Mexico or Canada or face a 2.5% tariff when shipping them to the U.S. The now-defunct North American Free Trade Agreement, or NAFTA, had set bar at 62.5%.
