USMCA Would Raise Tariff Revenue by $230M, CBO Estimates

Enactment of the U.S.-Mexico-Canada Agreement on free trade would increase federal tariff revenue by $230 million in 2023 and $360 million in 2024, estimated the Congressional Budget Office last week. CBO projects that “certain imports of motor vehicles and parts” that currently enter the U.S. duty-free under North American Free Trade Agreement would no longer be eligible for such treatment under the stricter rules of origin in USMCA. It expects that some of what was made would be replaced by domestic production, but some would be replaced by imports subject to tariffs.