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.
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