Key Players and Context
The Mexican auto parts industry, representing around 50% of the country’s automotive exports, is working alongside the Mexican government to reduce its dependence on China and bolster ties with North America, according to Francisco González, president of the Industria Nacional de Autopartes (INA).
Government’s Arbitrary Strategy
As part of its 2026 Economic Package, the Mexican government proposed imposing the maximum tariffs allowed by the World Trade Organization (WTO) on 1,463 product classifications from 17 strategic sectors originating from countries without existing trade agreements with Mexico.
This move, pending approval from the Mexican Congress, has sparked debate regarding whether tariff differentiation should be granted per product or country, especially for intermediate goods crucial to certain Mexican industries’ value chains.
Unity Between Industry and Government
The Mexican Secretariat of Economy has united with the auto parts industry, asserting that a differential tariff regime is unnecessary. The priority lies in promoting import substitution with regional supply chains, aligning with the United States’ stance as Mexico’s primary trading partner.
Focus on North America and Detachment from China
Francisco González emphasized the importance of aligning with the United States concerning China, particularly in light of new global trade dynamics. He highlighted Mexico’s role in the US value chain, facilitating a “coupling-decoupling” from China through collaboration with the International Finance Corporation (IFC) of the World Bank.
The Mexican government aims to reverse the growing trade deficit with Asia. Between 2020 and 2024, this deficit increased by 83%, and it could double within the next year, according to Secretary of Economy Marcelo Ebrard.
The focus is on the industrial fabric and employment. The proposed measure impacts $52 billion in annual imports (8.6% of total foreign purchases) and is part of the Program for Protection of Mexico’s Strategic Industries.
- Tariff Increases: Auto import tariffs rise to 50%, up from the current range of 15-20%. Autopartes import tariffs increase to a range of 10-50%, up from the current range of 0-35%.
- Industry Impact: Approximately 320,000 jobs in the automotive sector could be at risk if this trend continues.
González confirmed that the industry is aligned with the government’s proposal, and measures regarding China are expected to be implemented soon.
