Foreign-based carmakers may pull cheapest models from U.S., WSJ says

Foreign-based carmakers have warned the Trump administration that they may pull their cheapest models from the U.S. market if the U.S.-Mexico-Canada Agreement, USCMA, is not renewed or is watered down, Sharon Terlep and Gavin Bade of The Wall Street Journal reports, citing people familiar with the matter. Nissan (NSANY), Hyundai (HYMTF), and Toyota (TM) are offer U.S. customers new models of small, affordable automobiles after Detroit-based automakers ditched such cars in recent years. While the Honda (HMC) Civic and Toyota Corolla are made in the U.S., they rely on parts from all three North American countries. If the USCMA no longer exists or does not significantly reduce tariffs on cars and auto parts, foreign car makers may not be able to build and sell cheaper cars in the U.S., people familiar with the discussions told the Journal.