Mercedes Benz

New trucks are transported across the the border into the U.S. from Mexico at a federal facility in Otay Mesa, California. Photo credit: Reuters UPDATED: 8/29/18 3:39 pm ET - adds fact box WASHINGTON/MEXICO CITY -- A proposed U.S.-Mexico trade deal would allow President Donald Trump to slap punitive tariffs of up to 25 percent on imports of Mexican-made cars, SUVs and auto parts above certain volumes, auto executives and sources said on Tuesday. The United States and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA), pressuring Canada to sign up to new auto trade and dispute settlement rules to remain part of the three-way pact. But a previously unreported side agreement between the two countries would allow the U.S. to pursue "national security" tariffs on annual Mexican car and SUV imports of over 2.4 million vehicles. The side deal would allow national security levies on auto parts imports above a value of $90 billion per year on the sam...