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Assembly line at the Ford Kentucky Truck Plant. Photo: Bill Pugliano/Getty Images

Negotiations with Mexico on the North American Free Trade Agreement (NAFTA) have hit a wall as the U.S. and it's southern neighbor continue to accuse "one another of intransigence and inconsistency" following disagreements on car manufacturing rules, reports the Wall Street Journal.

Why it matters: The standstill follows President Trump's Wednesday remark as he said Canada and Mexico have been "very difficult to deal with." The U.S. and Mexico are at odds over the U.S.' proposed "skinny NAFTA deal" with those familiar with Mexico's position arguing that the U.S. is attempting to "bully" the country in to entering the deal. One person familiar with Mexico's reasoning told WSJ, "it doesn’t accomplish the essential task of solving our issues, the [NAFTA] issues."

By the numbers, per WSJ: "The current deal mandates that 62.5% of a car to come from a vehicle’s content to originate in the region. The U.S. proposed raising that to 75%, along with several other content rules related to aluminum and steel used to make vehicles, core parts like engines and transmissions and primary and secondary components."

  • "The U.S. also demanded that 40% of light vehicle content and 45% of pickup truck content be produced in high-wage zones with an average minimum wage of at least $16 per hour."

Go deeper

Kellyanne Conway's parting power pointers

Kellyanne Conway addresses the 2020 Republican National Convention. Photo: Nicholas Kamm/AFP via Getty Images

Kellyanne Conway has seen power exercised as a pollster, campaign manager and senior counselor to President Trump. Now that his term in office has concluded, she shared her thoughts with Axios.

Why it matters: If there's a currency in this town, it's power, so we've asked several former Washington power brokers to share their best advice as a new administration and new Congress settle in.

2 hours ago - Politics & Policy

GOP holdouts press on with plans to crush Cheney

Screenshot of emails to a member of Congress from individuals who signed an Americans for Limited Government petition against Rep. Liz Cheney. Photo obtained by Axios

Pro-Trump holdouts in the House are forging ahead with an uphill campaign to oust Rep. Liz Cheney as head of the chamber's Republican caucus even though Minority Leader Kevin McCarthy told them to back down.

Why it matters: What happens next will be a test of McCarthy's party control and the sincerity of his opposition to the movement. Cheney (R-Wyo.) is seen as a potential leadership rival to the California Republican.

Democrats aim to punish House GOP for Capitol riot

Speaker Nancy Pelosi passes through a newly installed metal detector at the House floor entrance Thursday. Photo: Drew Angerer/Getty Images

House Democrats plan to take advantage of corporate efforts to cut funding for Republicans who opposed certifying the 2020 election results, with a plan to target vulnerable members in the pivotal 2022 midterms for their role in the Jan. 6 violence.

Why it matters: It's unclear whether the Democrats' strategy will manifest itself in ads or earned media in the targeted races or just be a stunt to raise money for themselves. But the Capitol violence will be central to the party's messaging as it seeks to maintain its narrow majorities in Congress.