Background on Gabriel Padilla and the Industria Nacional de Autopartes (INA)
Gabriel Padilla, the General Director of the Industria Nacional de Autopartes (INA), recently announced that 92% of Mexican-manufactured auto parts are compliant with the USMCA regulations and thus exempt from tariffs when exported to the United States. The remaining 8% will pay an average tariff of 27%.
Who is Gabriel Padilla?
Gabriel Padilla serves as the General Director of INA, an organization representing Mexico’s automotive parts manufacturing industry. His role is crucial in understanding the current state and future direction of this vital sector.
What is the Industria Nacional de Autopartes (INA)?
The Industria Nacional de Autopartes (INA) is a Mexican organization that represents the country’s automotive parts manufacturing industry. INA plays a significant role in promoting and supporting the growth of this sector, ensuring its competitiveness on both domestic and international markets.
USMCA Tariff Exemptions for Mexican Auto Parts
According to Padilla, 92% of Mexican-manufactured auto parts qualify for tariff exemptions under the USMCA. These parts are exported to the United States without additional duties, thanks to Proclamation 10908 by the U.S. government.
The remaining 8% of non-compliant parts will only face the base tariff, avoiding the accumulation of previous additional tariffs under the Ley de Poderes Económicos de Emergencia Internacional (IEEPA) and Section 232 dispositions.
How does this impact Mexican auto parts manufacturers?
Padilla highlighted that the automotive parts sector has a high level of compliance with the USMCA. However, there are still challenges to address, such as strengthening regional integration, advancing in the development of suppliers to increase regional content, and forging stronger alliances.
Mexico’s Auto Parts Exports to the US
In 2023, Mexico exported auto parts to the United States for a record-breaking $82.5 billion.
Despite a 10.5% drop in the first two quarters of 2025, with $18.375 billion in revenue, Padilla anticipates a recovery by March due to increased production and sales of light vehicles in the U.S.
Key Export Segments
- Electrical parts: More than 19% of the total, valued at $3.517 billion
- Transmissions and clutches: $1.830 billion
- Interior components like fabrics and seats: $1.663 billion
Mexico’s Leadership in Auto Parts Supply
Mexico remains the leading supplier of auto parts to the United States, accounting for 43.15% of U.S. imports. This is higher than Canada (9.88%) and China (7.73%).
In the first two months of 2025, Mexico’s auto parts exports totaled $16.107 billion, with 87% directed to the U.S. and 3.1% to Canada, solidifying North America as the destination for 90% of Mexican exports.
Strengthening Supplier Development
INA’s Program of Supplier Development, in collaboration with the Corporación Financiera Internacional (IFC) from the World Bank Group, aims to bolster regional integration, elevate national content, and capitalize on opportunities.
This initiative has identified 35 key demand areas, ranging from direct inputs like steel, aluminum, plastics, and electrical materials to specialized services.
Key Questions and Answers
- What is the USMCA? The United States-Mexico-Canada Agreement (USMCA) is a trade agreement that replaced the North American Free Trade Agreement (NAFTA) in 2020.
- What does it mean for Mexican auto parts to be tariff-free under the USMCA? Tariff-free status under the USMCA means that 92% of Mexican-manufactured auto parts can be exported to the U.S. without additional duties, fostering a more competitive industry.
- What challenges does the Mexican auto parts industry face? Despite high compliance with USMCA regulations, the industry must strengthen regional integration, advance supplier development, and forge stronger alliances to remain competitive.
- Why is Mexico the leading supplier of auto parts to the U.S.? Mexico’s participation in U.S. auto part imports stands at 43.15%, surpassing Canada (9.88%) and China (7.73%).
- What is INA’s Program of Supplier Development? This initiative, in collaboration with IFC from the World Bank Group, aims to strengthen regional integration, elevate national content, and capitalize on opportunities within the Mexican auto parts industry.
