USMCA vs NAFTA, explained with a toy car
NAFTA made your car cheaper, USMCA could change that.
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When the North American Free Trade Agreement began in 1994, auto companies in the US, Canada and Mexico could trade parts and cars without paying tariffs. And they could source parts and labor from the cheapest places. That is a big reason why US car prices have only risen seven percent in 25 years.
But the US Mexico Canada Agreement — or USMCA for short — could change that; the new law would increase the regulations that car manufacturers need to meet in order to sell tariff-free cars.
We built a Ford Mustang to explain.
Read more about what’s in the proposed USMCA trade deal: https://www.vox.com/2018/10/1/17921966/usmca-nafta-agreement-trump-canada
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Vox.com is a news website that helps you cut through the noise and understand what’s really driving the events in the headlines. Check out http://www.vox.com.
Watch our full video catalog: http://goo.gl/IZONyE
Follow Vox on Facebook: http://goo.gl/U2g06o
Or Twitter: http://goo.gl/XFrZ5H
@Vox
January 8, 2026 at 12:23 pm
Renegotiating NAFTA is the latest in the Trump administration's escalating rhetoric and action around international trade.
Watch our video on trade wars, which outlines what's at stake: http://bit.ly/2qjliwj
@mirandalarson2266
January 8, 2026 at 12:23 pm
Did this age well?
@CaptainWoopa
January 8, 2026 at 12:23 pm
This video aged nicely
@CaptainAxetion69420
January 8, 2026 at 12:23 pm
Well……
@Shabobidhuffy
January 8, 2026 at 12:23 pm
This aged well… 😅
@Beast5seven
January 8, 2026 at 12:23 pm
To be Clear Countries specifically China were using Mexico to get free trade into the us. That economy didn’t grow overnight
@nelsonflores9080
January 8, 2026 at 12:23 pm
If machines were the cause of lost jobs in America, how can does jobs exist for Canadians or Mexicans. Wouldn't machines have taken over their jobs?
@henrygonzalez7233
January 8, 2026 at 12:23 pm
If only Vox knew… welcome to 2025
@norman9052
January 8, 2026 at 12:23 pm
lol blaming automation for job losses rather than cheaper labor in other countries
@lobo5292222
January 8, 2026 at 12:23 pm
Vox lost it like a decade ago.
@adelaferreira4575
January 8, 2026 at 12:23 pm
It would be interesting to hear your opinion about the 2007 stock market and housing bubble crash,that brought the country to its knees ,that would be a video worth watching !
@Foodsafetychannel
January 8, 2026 at 12:23 pm
And 6 years later, we get to see that this was so true!
@firdbird2453
January 8, 2026 at 12:23 pm
Bro unions made cars parts expensive. Mexico, Candia, and China work are paid cheap. Life is about sacrifice.
@Daniel-es9dq
January 8, 2026 at 12:23 pm
16 dollars an hour? How do you hire someone for 16 dollars an hour? The Chinese restaurant down the street is advertising 19
@JohnDoe-mx3rr
January 8, 2026 at 12:23 pm
I didn’t like my Honda made in Mexico. I hate how a lot of American cars are made in Mexico. Just make it in the US and stop giving those job to Mexico. We still get illegal crossing anyways.
@tromboneJTS
January 8, 2026 at 12:23 pm
FAST FORWARD to 2025.
YIKES!
@TaraXterra-w9j
January 8, 2026 at 12:23 pm
How are they affordable when Americans who made those cars lost their jobs? Our wages remained static since NAFTA, and it now takes a 4 year degree to be middle class thanks to NAFTA.
@Wizofawes
January 8, 2026 at 12:23 pm
@1:09 yay, science
@khodion
January 8, 2026 at 12:23 pm
2025 anybody?
@_Marc_D
January 8, 2026 at 12:23 pm
We need an update to this video!
@theagnihotris9763
January 8, 2026 at 12:23 pm
Aged like milk.
@robertbelarmino5805
January 8, 2026 at 12:23 pm
USMCA and NAFTA does not include china, why are they not paying Tariffs on exports to US, as they set up factories in Mexico and Canada to skirt US Tariffs. Mexico and Canada should look into these chinese investments in their countries and try to control and and set Tariffs on them being considered foreign companies.
@Conservatives_2025
January 8, 2026 at 12:23 pm
It’s actually CAUSM
@nicholasduron9827
January 8, 2026 at 12:23 pm
Great, now do a video on NAFTA's effects on Mexico's agricultural industry.
@NahumLegaspi
January 8, 2026 at 12:23 pm
Nafta took jobs away from Mexicans too. It broadened the competition. Nafta made life easier for everybody. "Better toys for the same price!"
@jschwartzmier
January 8, 2026 at 12:23 pm
Yay cheap labor and less jobs in the USA, I wonder if the CEOs took a pay cut over the last 20 years
@montecorbit8280
January 8, 2026 at 12:23 pm
Now tried doing a follow-up to this 6 years later….
With the fact that prices for new cars have nearly doubled it seems like, a new car costs more than $40,000 on average.
@walkingwithAbraham
January 8, 2026 at 12:23 pm
I don’t think this article got it right
@MrDan3k
January 8, 2026 at 12:23 pm
Aged like milk
@Victor43377
January 8, 2026 at 12:23 pm
Make this video again in 2025 lol
Comments are closed.