Mexican auto industry warns tighter USMCA origin rules raise costs

The Asociación Mexicana de la Industria Automotriz (AMIA), Mexico's auto industry association, told a U.S. International Trade Commission hearing on Oct. 14, 2026, that further raising the 75% regional value content threshold for vehicles lifts production costs, delays investment and weakens North America's ability to compete with other producing regions.

The testimony came during Investigation No. 332-608, the third of five biennial USMCA reviews the commission must deliver to the U.S. president and Congress, with a report due July 1, 2027. For Mexico the stakes are structural: the auto sector is the country's largest manufacturing exporter, and its plants sit inside supply chains that cross the border several times before a vehicle is finished. La Jornada reported that AMIA director general Odracir Barquera presented the association's position at the Oct. 14 hearing in Washington. The proceeding also unfolds alongside U.S. Section 232 tariffs on imported vehicles and parts, which AMIA says compound compliance costs for producers in all three countries.

Barquera argued that the dispute extends beyond the percentage itself. Some advanced-technology components and strategic inputs are not yet produced in North America at the scale or price the industry requires, so mandatory substitution raises vehicle costs and can favor imports from other regions, according to the AMIA presentation summarized by El Financiero on Oct. 19. North America built about 15 million vehicles in 2025, equal to 16.5% of global output and the second-largest regional share, yet regional production fell 2.1% and lost one percentage point of global share while China grew 9.7%, La Jornada reported. The sector supports roughly 13 million jobs across the three countries, AMIA said. The association's proposals include holding the 75% threshold, reviewing U.S. Customs and Border Protection certification instructions and drafting a trilateral audit manual for origin verifications.

The commission's report is due at the White House and Congress by July 1, 2027, and its conclusions will shape the next round of USMCA implementation talks. The hearing record and AMIA's written submission remain available through the USITC docket for Investigation No. 332-608.

Sources: Elevar reglas de origen pone en riesgo a la industria automotriz: AMIA · Alertan riesgos en contenido regional · USITC Hearing: USMCA Automotive Rules of Origin: Economic Impact and Operation, 2027 Report

This story was written with the help of artificial intelligence from verified sources and reviewed by a human editor before publication.