Nucor Takes Advantage of USMCA, Opens Steel Facility in Mexico
Years in the making, the United States-Mexico-Canada Agreement on free trade (USMCA) is finally about to pay off for one U.S. company: Nucor (NYSE: NUE), one of the world's largest steelmakers.
Signed into law by President Trump on November 30, 2018, USMCA encourages production of automobiles (among other things) in North America. It does this by instituting zero import tariffs on goods produced in Mexico, Canada, or the U.S., and exported to one of those three countries, provided that 62.5% (rising to 75% over time) of the automobile's "content" is certified manufactured in North America. In particular, 70% of a car's steel and aluminum must originate in North America.
That is why Nucor wants to do more business in the North American nation where labor is cheapest: Mexico.
Source Fool.com
