And it could have far-reaching political effects, including the Mexican general election in July 2018 and Mr. Trump’s own re-election campaign. If the deal does fall apart, the United States, Canada and Mexico would revert to average tariffs that are relatively low — just a few percent in most cases. The United States is pushing for higher levels, including a requirement to make 85 percent of the value of automobiles and auto parts in North America, up from 62.5 percent currently, and an additional requirement for 50 percent of the value to come from the United States. Industry representatives say such high and complex barriers could deter companies from manufacturing in the United States altogether. In both Canada and Mexico, Mr. Trump is unpopular, and caving to his demands could have devastating consequences for local politicians.

Source: New York Times October 11, 2017 17:56 UTC