Khandelwal, the average loss of real income due to the complete shutdown of trade would be 4% for the top 10% of the US population, but 69% for the poorest 10%. In late 2019, the Trump administration won Democratic support in Congress for the USMCA, after agreeing to incorporate greater enforcement of labor laws. In the updated Pact, the parties agreed on a number of changes: the rules of origin for the automotive industry were strengthened, so that 75% of each vehicle must come from the Member States, compared to 62.5%; And new work rules have been added, which require that 40 percent of each vehicle come from factories that pay at least $16 an hour. A proposal to extend intellectual property protection for U.S. pharmaceuticals — a red line for U.S. negotiators — has been sacrificed. . . .