Sources: U.S., Mexico reach deal on tariff rate for non-conforming autos

The U.S. and Mexico have agreed to subject autos that do not meet a modernized North American Free Trade Agreement rule of origin to a 2.5 percent tariff if they are made at an existing manufacturing facility, industry sources said -- meaning non-conforming autos made at new plants would be hit by Section 232 tariffs on auto imports if the Trump administration imposed them. In bilateral talks with Mexico in recent weeks, the U.S. demanded that non-conforming autos be subject...