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USMCA vs NAFTA, explained with a toy car
NAFTA made your car cheaper, USMCA could change that.
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When the North American Free Trade Agreement began in 1994, auto companies in the US, Canada and Mexico could trade parts and cars without paying tariffs. And they could source parts and labor from the cheapest places. That is a big reason why US car prices have only risen seven percent in 25 years.
But the US Mexico Canada Agreement -- or USMCA for short -- could change that; the new law would increase the regulations that car manufacturers need to meet in order to sell tariff-free cars.
We built a Ford Mustang to explain.
Read more about what’s in the proposed USMCA trade deal: https://www.vox.com/2018/10/1/17921966/usmca-nafta-agreement-trump-canada
Vox.com is a news website that helps you cut through the noise and understand what's really driving the events in the headlines. Check out http://www.vox.com
Check out our full video catalog: http://goo.gl/IZONyE
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Vox.com is a news website that helps you cut through the noise and understand what's really driving the events in the headlines. Check out http://www.vox.com.
Watch our full video catalog: http://goo.gl/IZONyE
Follow Vox on Facebook: http://goo.gl/U2g06o
Or Twitter: http://goo.gl/XFrZ5H
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