U.S., Jan. 11 -- An agreement between the U.S., Mexico and Canada regarding proposed tariffs on Chinese products in the automotive industry looks set to force 'major changes' in a number of leading supply chains.
The U.S. Mexico Canada Agreement (USMCA) is a trade deal that will enable more than USD $1.2trn in trade and as part of the deal, automobiles must have 75% of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs.
It is this particular detail that has seen around 41%% of U.S based automotive executives anticipate an increase in production costs by 10% in the next three years, with 26% of them believing it could be more than a 25% increase or more.
These are the results of a LevaData survey which ...