Report: Only 8% of Mexican auto parts manufacturers face new US tariffs

The National Auto Parts Industry (INA) reported that 92% of the Mexican car parts assemblage volition not beryllium taxable to caller tariffs from the United States, arsenic astir each manufacturing complies with existent commercialized rules.

Gabriel Padilla, wide manager of Mexico’s National Auto Parts Industry (INA), told reporters connected Monday that lone astir 8% of the nation’s parts manufacturers are not successful compliance with U.S.-Mexico-Canada Agreement (USMCA) regulations. As a result, they volition beryllium deed by an mean tariff of 27% to export to the U.S.

The manager of Mexico’s National Auto Parts Industry (INA), Gabriel Padilla, said the enactment is consulting with Mexico’s Economy Ministry to assistance those companies not successful compliance. (@inaoficialmx/X)

On April 29, U.S. President Donald Trump signed enforcement orders to standard backmost tariffs connected the car manufacture arsenic it became evident that the import taxes threatened to wounded U.S. manufacturers. Mexico’s President Claudia Sheinbaum said the determination provided Mexico’s manufacture with an “additional comparative advantage.”

On May 2, the U.S. Customs and Border Protection (CBP) published a announcement confirming that the caller rules would instrumentality effect the pursuing day. Shortly after, Sheinbaum announced that the 25% tariffs would not use to car parts made successful Mexico that comply with USMCA rules.

With the caller tariff rules successful effect, INA is consulting with Mexico’s Economy Ministry to assistance those companies not successful compliance. Such firms look the 25% tariff positive the Most Favored Nation (MFN) tariff — which ranges from 2% to 3% — due to the fact that they initially import specialized constituent parts into Mexico, Padilla said.

The MFN tariff is the modular tariff complaint a state applies to imports from different World Trade Organization members, unless a preferential commercialized statement is successful place.

During the archetypal 2 months of the year, car parts accumulation declined 10.5%, though Padilla expects March figures to amended owed to the summation successful accumulation and income of automobiles successful the United States. This summation has been attributed to consumers’ tendency to bargain cars earlier the archetypal tariffs were owed to instrumentality effect connected April 3.

New US tariff strategy gives Mexico’s car manufacture ‘an further comparative advantage,’ says Sheinbaum

Although Mexico’s car parts manufacture — comprising much than 2,000 factories — has an highly precocious compliance complaint with the USMCA, the assemblage faces respective challenges.

Padilla said determination integration indispensable beryllium strengthened, portion the supplier improvement programme indispensable summation determination content. INA is moving to diversify markets and suppliers to trim dependence connected azygous sources by expanding commercialized alliances and diversifying suppliers.

The Mexican car parts industry’s accumulation worth surpassed US $100 cardinal successful each of the past 2 years, with INA attributing the maturation to the nearshoring inclination and the enlargement of home manufacturing clusters.

Mexico’s automotive manufacture represents 3.6% of GDP and 20% of full exports. Mexico is the world’s fourth-largest exporter of car parts, with the United States arsenic its main destination.

With reports from El Financiero, Mexico Now and Yahoo! Finance