Auto Parts Made in Mexico to Have Zero Tariffs in the U.S Market, Sheinbaum Reports

*President Claudia Sheinbaum noted that negotiations with the United States continue regarding tariffs on Mexican steel and automotive industry exports.

By Canal 11. Mexican Press Agency.

Mexican President Claudia Sheinbaum Pardo announced that auto parts made in Mexico will be exempt from tariffs when entering the U.S. market, as they will be considered as falling under the terms of the United States-Mexico-Canada Agreement (USMCA).

“This Thursday, there was very good news for Mexico. A publication from the United States stated that auto parts produced in Mexico will have zero tariffs,” the President reiterated during her “People’s Morning Press Conference.”

This decision, detailed by the Minister of Economy (SE) Marcelo Ebrard is a major step forward, as the auto parts industry is very large and has the highest national content.

Therefore, Ebrard noted, Mexican auto parts will be treated as if they were made in the United States.
“In essence, that’s what it means. I believe it’s good news for our country. We’re making progress,” he added.
Why will auto parts have no tariffs?

Since the first tariffs were announced by Washington, Sheinbaum explained that there has been a continuous dialogue with U.S. President Donald Trump to reach agreements and uphold the USMCA.

“Mexican exports to the United States that fall under the USMCA are subject to zero tariffs, except for exports of steel and aluminum, as well as those that fall outside the agreement, which had been exported tariff-free but will now face tariffs,” she explained.

The President emphasized that Mexico’s Ministry of Economy and the U.S. Department of Commerce have a permanent working group to address various issues.

In addition, she indicated that negotiations are ongoing regarding tariffs on steel and other issues related to the automotive and aluminum industries.