Mexico Takes Proactive Steps to Safeguard Automotive Industry Amid Trade Talks

Fermaca Dreams Invests $3.7 Billion in Mexico’s Manufacturing and Digital Sectors
Published 03/27/2025

As international discussions on trade continue, Mexico’s automotive manufacturing industry is showing resilience and alignment with regional standards. According to the Mexican Automotive Industry Association (AMIA), 91% of Mexico’s automotive production already complies with the rules of origin established in the United States-Mexico-Canada Agreement (USMCA), underscoring the country's long-standing integration in North America's automotive supply chain.

Rogelio Garza, President of AMIA, emphasized that Mexico’s industry remains committed to both compliance and competitiveness. “Only 9% of vehicles produced in Mexico fall outside USMCA parameters, and we're actively reviewing how to bring that remaining portion into alignment,” he explained during a recent economic podcast interview. Garza also emphasized the importance of maintaining coordinated trade efforts, noting that changes could affect the entire region due to the highly integrated nature of the North American auto industry.

Subscribe to our newsletter!

Meanwhile, the Mexican government has taken a proactive role in trade negotiations, with Secretary of Economy Marcelo Ebrard holding a fourth round of talks in Washington, D.C., to address concerns regarding the potential imposition of a 25% tariff on certain vehicles. During a national press briefing, Ebrard announced three key outcomes from these ongoing discussions:

  1. Tiered Tariff Reductions Based on Integration: Vehicles manufactured in Mexico that include a higher percentage of U.S.-made components will qualify for reduced tariffs, incentivizing cross-border supply chain collaboration.
  2. Protection for Auto Parts: Mexican-made auto parts will remain exempt from new tariffs as of April 2, maintaining a stable flow of components vital to North American assembly lines.
  3. Single-Tariff Application: Manufacturers operating in Mexico will not face repetitive tariff applications for parts or products that cross the border multiple times during production.

We recommend you these articles...

President Claudia Sheinbaum emphasized the importance of maintaining North American collaboration while reaffirming Mexico’s commitment to protecting national industry and employment. She noted that Mexico will continue working with automakers such as Ford, General Motors, and Nissan to assess potential impacts and explore opportunities to boost domestic demand and reinforce industrial growth through Plan México.

Looking Ahead

Amid a dynamic global landscape, Mexico’s automotive manufacturing industry remains strong, compliant, and well-positioned for continued nearshoring and export growth. As trade dialogue evolves, Mexico’s focus on collaboration, workforce development, and supply chain resilience provides manufacturers with the predictability and support they need to thrive.

Are you considering expanding into North America? Contact American Industries to learn how our shelter services and site selection expertise can help you launch or grow your operations in Mexico's robust automotive ecosystem.

Why manufacturing in Mexico?

Related Posts