Trump tweeted: "Congratulations @Toyota! BIG NEWS for US Auto Workers! USMCA is already fixing the broken NAFTA deal."
The agreement must pass both the democratically controlled house and the republican controlled senate, and legislators in both parties have criticized some of its provisions. It is likely that Congress will wait for a financial impact study due to be published next month by the United States International Trade Commission before considering ratification.
Context: As proposed, the new trade agreement is nothing but NAFTA. However, it contains provisions that put greater pressure on car manufacturers to increase production in the United States.
One of the most notable changes in the agreement is that 75% of the vehicle parts must be manufactured in North America, from the current 62.5% rule, to be free of charges. It would also require several of its parts to be made by workers earning at least $ 1
In a statement sent to CNN, Toyota said that these new investments are part of the ongoing efforts to produce vehicles where they are sold.
"While we continue to closely monitor trade discussions, our manufacturing investments are years on the road," a spokesman said in an email.