On Tuesday, Secretary of the Economy of Mexico Marcelo Ebrard announced a 15% average tariff on cars assembled in Mexico and exported to the U.S. This move comes as a relief measure following the recent 25% U.S. import tariff on vehicles, reflecting preferential treatment for products complying with the United States-Mexico-Canada Agreement (USMCA).
Ebrard emphasized the significant advantage this provides compared to other countries exporting to the U.S., expressing hope for eventual zero tariffs. The Secretariat of the Economy spokesperson confirmed that this reduction applies to exports meeting USMCA’s regional content requirements.
The U.S. began imposing a 25% tariff on all imported vehicles in early April 2025. However, Mexican and Canadian automakers can seek tariff reductions under the USMCA. Importers can lower tariffs by demonstrating the percentage of U.S.-made parts in each vehicle. With U.S. Department of Commerce approval, the 25% tariff will only apply to non-U.S. parts, not the entire vehicle value.
This policy is expected to significantly boost Mexico’s automotive industry. As a major car assembly and export hub to the U.S., shipping about 2.6 million vehicles annually, this tariff reduction offers an opportunity to enhance the sector’s competitiveness and strengthen its position in the U.S. market.
Mexico has grown its automotive industry through close trade ties with the U.S., and these tariff reductions are expected to have a positive impact on the country’s automotive industry.
However, to continue to capitalize on these benefits, Mexico will need to take a strategic approach, including ensuring full compliance with USMCA regulations and increasing the use of U.S.-origin parts. It is also important to remain sensitive to changes in U.S. trade policy and ensure supply chain flexibility.
Automakers should closely monitor these North American trade developments. Companies with production bases in Mexico must strictly adhere to USMCA regulations to maximize tariff benefits. To maintain competitiveness in the U.S. market, they should consider increasing U.S.-made parts usage and implement strategic supply chain management.
