With this new measure, it is important to emphasize that light vehicle production in Mexico has become one of the main manufacturing industries. From January to July 2024 alone, 2.3 million automobiles were produced, according to data from the Mexican Automotive Industry Association (AMIA).
These vehicles are produced in 20 automotive plants distributed throughout the country, belonging to various brands such as Ford, Toyota, Nissan, Honda, Volkswagen, Audi, Mazda, Mercedes-Benz, among others.
US President Donald Trump confirmed this Wednesday the 25 percent tariffs imposed on all automobiles manufactured outside the United States, which will take effect at midnight.
The US president announced that he will impose a 20 percent tariff on imports from the European Union (EU) as part of his trade war with countries and blocs around the world.
The Mexican peso is still holding up due to Trump’s auto tariffs
On the other hand, Trump announced the imposition of 10% tariffs on imports from Argentina, Brazil, Colombia, and Chile, among other Latin American countries, as part of a series of “reciprocal” tariffs around the world. He justified this measure because, he said, these countries already impose 10% tariffs on US products.
It is important to emphasize that goods manufactured in Mexico and Canada that comply with local content rules will continue to be exempt from tariffs, according to the fact sheet released by the White House.
“Goods that do not comply with the USMCA’s local content rules will face a 25% tariff, and energy and potash that do not comply with these provisions will face a 10% tariff,” the document states.
If the International Emergency Economic Powers Act orders requiring Mexico and Canada to combat fentanyl trafficking and migration to the United States are rescinded, goods that comply with the USMCA would continue to receive preferential treatment, while goods that do not would be subject to a reciprocal tariff of 12%.
Which states produce the most cars in Mexico?
The list of states with automobile manufacturing plants includes 11 entities, with Guanajuato, Aguascalientes, Puebla, Coahuila, and the State of Mexico standing out for their production capacity.
Among them, Guanajuato has a production capacity of 888,100 units per year of the Toyota, General Motors, Mazda, and Honda brands.
In second place is Aguascalientes, with an annual production of up to 766,708 Nissan units.
On the other hand, Puebla achieves an annual production of 622,500 units, while Coahuila reaches 564,400 units of the Stellantis, General Motors, Audi, and Volkswagen brands, respectively.
Thus, the State of Mexico ranks fifth, with a production capacity of 517,920 Ford and Stellantis cars per year, according to AMIA data.
To which countries does Mexico sell the most cars?
In 2023, Data México, a platform from the Ministry of Economy, established that the main commercial destinations for vehicles exported from Mexico were:
The United States, with sales of $129.68 billion.
Canada, with $8.616 billion.
Germany, with $6.332 billion.
Brazil, with $1.706 billion.
China, with $1.223 billion.
The states with the highest sales were:
Mexico City, with $60.553 billion.
Puebla, with $15.751 billion.
State of Mexico, with $12.508 billion.
Guanajuato, with $11.348 billion.
Nuevo León, with $9.547 billion.
Last year was crucial for the industry, as production suffered a decline in 2020 due to the COVID-19 pandemic. By 2024, according to INEGI figures, automotive companies produced 3,989,403 units, surpassing the 2017 record of 3,933,154 units assembled.
This, according to AMIA, placed Mexico in fifth place worldwide as an automotive producer, surpassing powerhouses such as Germany and South Korea.
The Association also highlighted that Mexico rose to fourth place as an auto parts producer.
Context: What are Trump’s tariffs?
Donald Trump announced a 25% tariff on automobiles exported to the United States, which will significantly affect Mexico, as 80% of the vehicles produced in the country are destined for that market.
This measure could make Mexican cars more expensive, reducing the industry’s competitiveness and potentially leading to job losses.
However, the USMCA could offer some protection by exempting vehicles that meet its regional content requirements.
Source: lasillarota
