Navigating Challenges in Mexico's Auto Industry: A USMCA Crossroads

Mexico's auto industry has expressed concerns over a challenging outlook in light of the scheduled 2026 review of the USMCA agreement. Tighter rules of origin and increased scrutiny on Asian content in vehicle components are among the key issues cited by executives.

During the CIAN automotive conference, heavy-vehicle manufacturers highlighted the difficulties in meeting the current USMCA trade requirements. Industry leaders stressed the need to adhere to the agreement's mandate that a significant percentage of vehicle parts must originate in North America to maintain tariff-free access.

Concerns have been amplified following U.S. plans to impose 25% tariffs on imported heavy trucks. Mexican officials have called for stronger regional coordination, while also considering raising tariffs on Asian imports to protect domestic jobs and address international trade concerns.