U.S. trade agency sees 76,000 new auto jobs following North American trade deal

by SpeedLux
rural road in northern California

The Trump administration on Thursday estimated that its recent North American trade deal will generate 76,000 automotive sector jobs under five years as automakers invest some $34 billion in new plants to adhere to the pact’s new regional content regulations.

The forecasts from the U.S. Trade Representative’s office were released before an independent trade panel’s hotly anticipated analysis that economists expect to show little or no U.S. gains from the recent U.S.-Canada-Mexico Agreement.

A USTR official informed reporters that the jobs and investment estimates are based on strategies disclosed by automakers to the trade agency for compliance with the new agreement’s tighter rules of origin. These require 75 percent of a vehicle’s content to be produced in North American, with 40-45 percent produced in high wage areas, namely the United States or Canada.

A senior USTR official told reporters that none of the 15 automakers producing vehicles in North America aim to opt out of the agreement to pay U.S. tariffs instead and shift production overseas, as some critics of the deal have suggested.

“They have verbally committed to us that they intend to adhere to the rules,” the official stated. “And they have told us that this is not going to have major upward pressure on vehicle prices.”

The estimates consist of about $15.3 billion investments earlier announced by Fiat Chrysler, Ford Motor, General Motors, Toyota, Volkswagen, and SK Innovation.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.


SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.


©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More