Mexico has proposed narrowing the U.S. 25% tariff on vehicles imported from Canada and Mexico so it applies only to auto parts made outside North America, a move that would exempt Mexican and Canadian parts and lower the effective tariff rate on regional vehicles. The plan, reported by the Wall Street Journal on August 12, was made in recent weeks as part of USMCA review talks and aims to preserve North America's integrated automotive supply chain. Canada is separately negotiating with Washington before additional U.S. tariffs scheduled for August 19, but CBC News said Ottawa was dissatisfied with partial relief offered on August 11 after President Donald Trump threatened 50% tariffs on a broad range of Canadian imports. The talks come ahead of the trade pact's six-year review in July 2026, when auto rules of origin and regional content requirements are likely to be central issues.