The head of the Mexican Automotive Industry Association (AMIA) stated that, despite everything happening due to tariffs, particularly Section 232 (referring to steel and aluminum tariffs), and all that has happened in Mexico, the industry is still going strong. Deputies have moderated the tariffs proposed by the President but maintained the 50% rate for Chinese cars, steel, and aluminum. He defined the upcoming year as a 'special' one where the focus will be on renegotiating the USMCA and reversing the tariffs that persist and affect this industry, which has lost its momentum as one of the most dynamic in the economy. Regarding the trilateral agreement, he expressed confidence that it will ultimately be beneficial for all three countries, as he assured it is convenient for all parties; however, he acknowledged there will be details for each sector. In his case, he said they are preparing for a discussion on regional content. 'What we want is free trade and free access, which is what has allowed us to grow over the last 30 years,' he added. Without wanting to anticipate where the pressure from the Trump administration will come from, Garza pointed out that Mexico has to offer better customs processes, content measurement, and other advantages, but he emphasized that the agreement is beneficial for all three countries. Regarding tariffs, Garza also stressed that the demand for both the Mexican and U.S. governments is the total elimination of tariffs affecting the industry, as he said they are not even related to problems in this sector. For the automotive sector, the start of 2026 looks challenging, as despite intense negotiation tables, they are still under Donald Trump's punishment of 25% tariffs for this sector, as well as for steel and aluminum, under his 'national emergency' strategy. 'If we don't strengthen this region, other regions will overtake us,' he explained, noting that currently, the European industry is already getting very close to Mexico in car manufacturing. Finally, Garza backed the initiative currently being discussed in Congress to impose tariffs of up to 35% on auto parts from countries without a Free Trade Agreement with Mexico. He also reiterated that he will not accept a reduction in tariffs: 'We are aiming for 0%, and the ideal is to achieve it before June, which is when the USMCA review will begin,' he said. Citi analysts expressed concern over the inflationary impact of tariffs on China. He also added that the elimination of tariffs will strengthen the region. 'With data up to November, we are practically flat. For now, he indicated that 2025 is 'flat' compared to 2024 with the most recent data corresponding to November. 'We support the initiative and policy launched by the Ministry of Economy for the protection and strengthening of the national industry, vehicles,' he said. In this context, uncertainty prevails. In a press conference, the director of the Mexican Automotive Industry Association (AMIA, Rogelio Garza, acknowledged a cautious first quarter due to the USMCA review and the expectation that these tariffs will be reversed for the sector. Garza acknowledged that it was difficult to make a forecast on how the industry will close this year: 'I would say moderately well.' Production was down 1.5%, exports down 1.6%, and sales up 1%.
