Impact of Tariffs on Mexico's Automotive Industry

Francisco Gonzalez from INA warns that US tariffs on steel and aluminum could severely impact Mexico's automotive supply chain, potentially reducing investments and increasing costs. This looming change poses a significant threat to the over 880,000 jobs in the sector.


Impact of Tariffs on Mexico's Automotive Industry

The president of the National Auto Parts Industry (INA), Francisco González, expressed his concern about the tariff measures proposed by the Donald Trump administration, which include tariffs on steel and aluminum. These measures could significantly impact the automotive production chain, particularly affecting auto parts that cross the borders of the USMCA multiple times during their manufacturing process.

According to González, the auto parts industry in Mexico is crucial for the country's economy, generating around 108 billion dollars in foreign exchange and being the largest employer with 880,000 jobs in 2,000 manufacturing plants. On the other hand, Guillermo Rosales, president of the Mexican Association of Automotive Distributors (AMDA), considers the extension of tariffs on the automotive industry to be unfeasible due to the close commercial integration between Mexico and the United States.

Rogelio Garza Garza, president of the Mexican Automotive Industry Association (AMIA), rules out the possibility of assembly plants relocating from Mexico to the United States, despite the threat of tariffs from the US government. Garza Garza emphasizes the complexity of unwinding the integration of productive chains that has taken years to establish.

Experts point out that the imposition of tariffs by the United States could disrupt the Mexican automotive industry, affecting supply chains and increasing vehicle costs. They underline the importance of continuing negotiations to strengthen the North American region, as Mexico plays a fundamental role in the supply chain of parts for automobile manufacturing in the United States.

Despite the pressure from the Trump administration to move car production to the US and avoid tariffs, representatives of the Mexican automotive industry doubt the viability of this proposal. It is argued that the North American region must compete as a block against other global automobile producers, such as Asia, and there is a call to negotiate for the benefit of strengthening the USMCA.

It is highlighted that Mexico has 42 assembly plants and 13 car brands operating in the country, and that a large part of the vehicle and parts imports to the United States come from Mexico. The uncertainty generated by the imposition of tariffs could affect investment projects in the Mexican automotive industry, which could have repercussions on the economy and employment in the country.