Instead of the 62.5% North American content hurdle in NAFTA, USMCA has a regional value content (RVC) threshold for vehicles and three categories of automotive parts: core, principal, and complementary.

AutoInformed notes that only three vehicles imported to the U.S. — Nissan Versa, Audi SQ5 and the Fiat 500 — are above that 62.5% threshold and below the new 75% requirement. Those three vehicles sold a combined 177,097 units in the U.S. last year, according to Mexican manufacturing publication Manufactura.

There is a new RVC for North American steel and aluminum content and a new labor value content (LVC) rule that states that 40% of a passenger vehicle and 45% of a pickup or cargo vehicle must be made by hourly workers who earn a wage of US $16/hour or more un-adjusted for inflation so that it becomes meaningless over time.

Automakers can earn up to 10% credit toward the LVC from R&D and information technology work done in the region where the production takes place, and a 5% credit toward the LVC for assembling the vehicle in a high-wage region in North America.