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Automakers to pay nearly $3B in tariffs under USMCA: Budget Office estimate

Automakers would pay nearly $3 billion in tariffs over the next decade under President Donald Trump's new North American trade deal, according to a Dec. 16 estimate released by the Congressional Budget Office.

The office said the U.S. is expected to see a $2.97 billion jump in customs revenue through 2029 under the new United States–Mexico–Canada Agreement. The agreement is expected to be considered by the House of Representatives on Dec. 19.

The budget office said this revenue increase would mainly come from higher tariffs on vehicles and auto parts because of stricter rules in the USMCA.

"CBO projects that certain imports of motor vehicles and parts that currently benefit from favorable treatment under the North American Free Trade Agreement would not be eligible for favorable treatment under the new agreement," the office said. "Because of that change in eligibility, CBO projects that duty-free imports of vehicles and parts into the United States from the USMCA partner countries would decline."