Automotive companies in Mexico are affected by Donald Trump's threats to eliminate incentives for the purchase of electric vehicles and apply tariffs on products exported from Mexico and Canada. Isabel Studer, president of the NGO Global Sustainability, mentioned that these measures could jeopardize the progress of electromobility in North America.
The United States is one of the main markets for electric vehicles worldwide, and the imposition of tariffs or the elimination of incentives could leave U.S. companies and Mexico behind compared to regions such as Europe and Asia. Eugenio Grandio, president of the Electro Mobility Association (EMA), indicated that brands like Tesla, BYD, Volvo, and others could adjust their offerings and production if incentives in the U.S. are eliminated.
For her part, Diana Ávalos, general director of the Mexican Association of Electric Vehicles (AMIVE), highlighted the concern among U.S. brands about the possible technological disadvantage compared to China in the production of electric vehicles. The dependence on components and Mexican labor from North American companies could leave them at a disadvantage.
Additionally, the protectionist measures proposed by the United States within the framework of the USMCA could affect competitiveness and leave Mexico at a disadvantage in the electric vehicle supply chain. Mexico and the U.S. do not produce lithium batteries on a large scale, which could create a dependency on costly and limited inputs for Mexico if the battery industry in the U.S. is not rapidly developed.
Experts also argue for the need for greater regional integration to counteract the effects of protectionist policies in North America. The possibility of regional collaborations with Latin American countries that have access to significant lithium reserves is being considered to boost a more regional supply chain in the electric vehicle sector.
Despite positive figures in global electric vehicle sales, in Mexico they are still low in comparison. Examples of Mexican production include the Ford Mustang Mach-E and the GM Equinox EV. Trump's threat to impose tariffs and eliminate incentives would not only affect the automotive industry but also the entire chain of new green technologies in North America.
In summary, the decisions proposed regarding electric vehicles could have a significant impact on the Mexican automotive industry and the transition towards more sustainable vehicles in North America. The elimination of incentives and the imposition of tariffs could hinder progress toward electromobility in the region, leaving countries like Mexico at a disadvantage against international competitors.
