U.S. President Donald Trump's rewrite of North American trade rules will cost automakers nearly $3 billion more in tariffs over the next decade for cars and parts that will not meet higher regional content requirements over the next decade, the Congressional Budget Office (CBO) estimates.
The projection was contained in the nonpartisan budget referee agency's cost estimate of implementing legislation for the new U.S.-Mexico-Canada Agreement, which will be considered by the U.S. House of Representatives on Thursday.
USMCA, the replacement for the 26-year-old North American Free Trade Agreement (NAFTA), is expected to pass the House with broad support from Republicans and Democrats.