North America’s 1994 free trade agreement needs a makeover for the modern age. Enter: the United States-Mexico-Canada Agreement. Pronounced OOH-smih-kuh. Or simply U-S-M-C-A. DC has been debating the deets for over a year, and now (almost) everyone is on board.
Here’s what the USMCA could mean for your money.
You could pay more for a new ride. Under the deal, vehicles must be made with a certain proportion of North American parts by workers earning fair wages to avoid tariffs. Great news for auto workers, not necessarily great news for car and truck prices.
But you could pay less for other stuff. The USMCA will put us on better terms with our neighbors...who happen to be some of our biggest trading partners. Optimists hope it will pave the way to more – and more comprehensive – trade deals. Which could cancel some of those pesky tariffs that have made things like washing machines and watches more expensive lately.
Related: How Tariffs Can Affect Your Wallet
It might make the economy (and your investments) happy. According to the US International Trade Commission, the USMCA will create more than 175,000 new jobs and raise our GDP by $68.2 billion. Stocks have gotten a boost from good NAFTA 2.0 news in the past. Here’s to hoping that trickles down to your portfolio.
theSkimm: Trade has been an extra controversial topic since Trump moved into the White House. Many say this deal is a big win for him. That could be a win for your wallet, too...as long as you aren't in the market for new wheels.