Trump's Electric Vehicle Mandate Reversal Affects Mexico

Donald Trump announced the termination of green car incentives which could significantly impact the Mexican automotive industry, with 80% of 4 million cars produced last year exported to the U.S.


Trump's Electric Vehicle Mandate Reversal Affects Mexico

The President of the United States, Donald Trump, recently announced his intention to end the incentives for the manufacturing of electric and zero-emission vehicles, eliminating a mandate previously established by former President Joe Biden that aimed for half of car sales to be of this type by the year 2035. According to Trump, this action is part of the repeal of the Green New Deal and aims to protect the domestic automotive industry and workers in the sector.

Alberto Bustamante, director of the National Automotive Suppliers Agency (Anapsa), expressed his concern about this measure, pointing out that it would significantly impact Mexico, given that 80 percent of the more than 4 million cars produced in the country last year were exported to the United States. Additionally, companies like General Motors, Ford, Stellantis, and Toyota produced around 170,000 hybrid and electric cars in Mexico, mainly intended for export.

Bustamante warned that Trump's decisions could delay the progress of electrification goals in the region, as well as hinder the manufacturing and sale of electric vehicles in the future. The imposition of potential tariffs on Mexican products would also be detrimental to American consumers, as each car exported to the United States contains between $8,000 and $10,000 in parts manufactured in Mexico.

In this sense, the imposition of tariffs would harm both the Mexican automotive industry and American consumers, considering that Mexico is an important supplier of parts for vehicle manufacturing in the United States.