Auto industry says virus is undermining efforts to adjust to new trade rules

Published March 20, 2020 3:00am ET



One unexpected effect of the coronavirus outbreak is that the domestic auto industry is experiencing difficulty adjusting to the new rules being rolled out under President Trump’s United States-Mexico-Canada Agreement because the industry isn’t sure it’ll actually be able to comply with them anytime soon.

USMCA will require the industry to adjust those supply chains in a myriad of ways. The problem, trade groups say, is that the global pandemic is causing so much chaos along those chains that they can’t check to see whether the supply chains fit under the new rules — and they won’t be able to for a while. Just keeping production going and ensuring employees don’t get sick has proved a significant problem. Trade associations are asking the White House to delay implementing the new rules.

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