In Pictures: A look at how free trade drives GM's engines
Updated : 2019-11-18 17:38:48
US President Donald Trump now seeks to replace NAFTA with the new United States-Mexico-Canada Agreement (USMCA), signed by the countries' leaders last November, which he says will boost American jobs. However, if Trump follows through on his repeated threats to pull the United States out of NAFTA if the US Congress does not ratify USMCA, automakers would be forced to pay a patchwork of tariffs under World Trade Organization rules. That would destroy the cost advantages of their cross-border supply chains - which include US companies employing American workers - and would likely force automakers to redesign their manufacturing models and find cheaper alternatives elsewhere, industry experts say.