BMW and other companies face a 2.5% tariff if they do not meet all the conditions agreed upon to export vehicles to the United States, including aspects related to unions and suppliers. Chinese manufacturers, such as BYD, are exploring locations in Mexico, especially in Monterrey, with the aim of establishing a presence in Latin America and later in the U.S. Although BYD acquired land in Monterrey to build a car factory, the project is currently on hold.
BMW's factory in San Luis Potosí, with 3,700 employees, highlights the importance of Mexico for automobile manufacturers. The Mexican industry produced more than three million vehicles in the first nine months of this year, exporting two million of them to the United States. However, Mexico's relevance in the global automotive industry is at risk.
BMW has completed a large industrial complex in San Luis Potosí, stating that the decision to build there is based on a long-term strategy of at least 40 years. Despite Donald Trump's threats to impose punitive tariffs on Mexican automobiles, BMW executives emphasize the quality of Mexican workers and suppliers.
The factory in San Luis Potosí produces luxury models for various markets, including Europe, China, and the U.S. Mexican suppliers must meet the high-quality standards required by BMW, supplying critical parts for vehicle manufacturing. The uncertainty generated by potential tariffs could affect suppliers and the supply chain.
As part of the USMCA, BMW faces requirements related to union formation in Mexico. The San Luis Potosí plant has become a key production point for the company, exporting vehicles to several countries. The automaker highlights the importance of keeping borders open and respecting existing trade agreements.
Despite trade restrictions in China, BMW plans to produce vehicles in Mexico for export to the U.S. and other countries. The review of the treaty between the United States, Mexico, and Canada is scheduled for 2026, where the future of the agreement will be decided. Trade barriers could impact the economy and the supply chain in the region.
