Mexico’s Economy Minister announces that, thanks to USMCA preferential discounts, cars assembled in Mexico will face an average 15% U.S. tariff instead of 25%, providing a major boost to the auto sector.
Mexico’s Economy Minister Marcelo Ebrard announced on Tuesday that cars assembled in Mexico and exported to the United States will incur an average tariff of just 15% rather than the 25% originally imposed by the U.S. administration, thanks to preferential discounts available under the U.S.–Mexico–Canada Agreement (USMCA).
Under the USMCA, exporters can certify the share of U.S.-sourced parts in each vehicle, allowing importers to reduce the tariff applied to the non-U.S. portion of the vehicle. This certification process must be validated by the U.S. Department of Commerce and is renewable every six months. Ebrard cautioned that any misstatement in these certifications could trigger retroactive penalties, underscoring the importance of precise reporting by companies.
“This is a very big advantage compared to other countries that export to the United States. Of course, we would love it to be zero,” Ebrard said at a Mexico City event, highlighting the competitive edge the tariff relief provides to Mexico’s auto sector, which supplies millions of cars to the U.S. market annually.
The Trump administration’s decision to impose a 25% tariff on car imports not manufactured in the United States was announced on March 26 and went into effect in early April. Automakers from Mexico and Canada, both parties to the regional trade agreement, can now apply for these preferential discounts by documenting the U.S. content of their vehicles.
A spokesperson for the Economy Ministry confirmed that only exports meeting USMCA rules of origin qualify for the discounts. Companies must submit detailed documentation to the U.S. Department of Commerce and U.S. Customs to participate, and failure to renew certifications every six months—or inaccuracies found by Customs—could lead to the application of the full 25% tariff retroactively.
Industry analysts say the tariff relief will cushion domestic assemblers and dealers against the broader impact of President Trump’s global import levies. Mexico, a major assembler and exporter of vehicles to the United States, faced mounting pressure from automakers seeking to soften the blow of the new import taxes.
Ebrard’s announcement underscores Mexico’s strategic use of regional trade rules to protect its export-driven economy. As U.S.-Mexico trade relations continue to evolve, the ability to leverage USMCA provisions will remain critical for Mexico’s automotive sector to maintain its role in the North American supply chain