Trump Administration Seeks 50% U.S. Auto Parts Threshold in USMCA; Iran Talks Progress Continues

According to U.S. government officials, the Trump administration is proposing revisions to the United States-Mexico-Canada Agreement (USMCA) to require that 50% of automotive components and raw materials be sourced from the U.S. to qualify for preferential tariff treatment under the agreement. The proposal was disclosed on May 30.

Separately, U.S. officials revealed that Trump spent approximately two hours in a situation room meeting regarding Iran negotiations on May 30 but made no final decision on a new agreement. Officials indicated they are approaching an accord, though certain matters including the unfreezing of Iranian assets remain under discussion.