- Car Dealership Guy News
- Posts
- Most Mexican auto parts exporters will avoid new U.S. tariffs
Most Mexican auto parts exporters will avoid new U.S. tariffs
CDG News Alert (< 1 min. read)
Anna del Villar
May 15, 2025
National Auto Parts Industry (INA) Director Gabriel Padilla
Driving the news: Nearly all of Mexico's auto parts manufacturers (92%) will avoid Trump's new tariffs according to the National Auto Parts Industry (INA), sparing a vital sector of the Mexican economy.
For context: The 8% of auto parts companies facing the 27% export charge (President Trump's 25% tariff plus a 2-3% standard rate) fall short because of specialized components which are imported into Mexico, INA Director Gabriel Padilla explained this week. This violates the USMCA's regional content requirements.
Why it matters: Auto parts production in Mexico has exceeded $100 billion annually for two consecutive years and represents 3.6% of the country’s GDP and 20% of total exports. Mexico currently ranks as the world's fourth-largest auto parts exporter, with the U.S. as its primary market.
What we're watching: Padilla is coordinating with Mexico's Economy Ministry to assist non-compliant manufacturers while working to strengthen regional integration and reduce dependency on single-source suppliers.
Outsmart the Car Market in 5 Minutes a Week
No-BS insights, built for car dealers. Free, fast, and trusted by 95,000+ auto pros.
Subscribe now — it’s free.
Reply