Wall Street Journal: The Trump administration currently charges a 25% tariff on non-U.S. content in vehicles from Canada and Mexico. The Mexican proposal, made in recent weeks, would expand the tariff-free content allowed in vehicles and lower the top-line tariff rate for North American cars.
Under the Mexican plan, the U.S. would only apply tariffs on the value of vehicle components produced outside North America, allowing parts from Mexico and Canada to qualify for duty-free treatment, according to people with knowledge of the negotiations.
The plan would drop the top-line tariff from 25% to a lower figure—likely 5% or 10%—on cars from North America that don’t comply with the deal…