Key Players in Mexican Truck Manufacturing Acknowledge Delays Due to T-MEC Review
Daimler, Kenworth, and International—the leading heavy truck manufacturers in Mexico—have admitted that uncertainty surrounding the T-MEC review has slowed down certain projects and reduced demand for trucks both domestically and in the United States. Investments are expected to resume once a trilateral agreement is reached, signaling the start of growth for the heavy vehicle industry.
Executive Perspectives on T-MEC Review and Arrival of 25% US Truck Export Tariff
Holger Dürrfield, General Manager of Mercedes-Benz Autobuses, expressed confidence that clarity will emerge once the T-MEC review concludes. Companies will know which tariffs to pay, and investments will be encouraged as it’s a “contract” that eliminates uncertainty for the three trading partners.
On November 1, the United States implemented a 25% tariff on Mexican truck exports. Although this is a concern, it’s too early to measure the impact, and current effects are manageable.
Marcela Barreiro, CEO and President of Daimler Truck México, stated that they are still analyzing the real impact. Their products are primarily in the US, components from America, and the majority of their Mexican impact is minor.
Barreiro added that no effects have been felt so far. “Aranceles always have an impact since our 100% of products aren’t tariff-free, but these tariffs are manageable.”
Commitment to Mexican Manufacturing Despite Tariffs
During the ANPACT 2025 Transportation Expo, brands manufacturing in Mexico and exporting to the US (over 90% assembly) reaffirmed their manufacturing presence in the Mexican market and commitment to continued investment, despite tariffs imposed by Donald Trump.
Javier Valadez, Operations Director for Mexico at PACCAR and Kenworth, emphasized that their plant remains strong in Mexico, with commitments and investments continuing.
Content Value and Regional Sourcing by Kenworth and International Motors
Kenworth’s heavy vehicle production has an average of 72% US value content, while regional content is at 64%. They have 16-22% Mexican content, 7-8% Canadian content, and less than 2% Chinese origin.
International Motors México invested $25 million in infrastructure development and another $200 million in painting area upgrades at their Escobedo plant. Despite Trump’s policies, they have no plans to relocate from Mexico.
Strengthening the Trilateral Agreement and Regional Value Content
Kenworth seeks a robust trilateral agreement and aims to increase regional value content by obtaining manufacturing supplier certifications.
“Maintaining the T-MEC has always been our key; maintaining, strengthening, and continuing to fortify regional integration,” said Kenworth’s representative.
Valadez noted that, for Kenworth, the US tariff imposition hasn’t significantly affected them since they produce in both countries and share suppliers.
The CEO of Mercedes Benz believes the T-MEC’s essence won’t change, as Mexico and the US mutually rely on each other.
Key Questions and Answers
- What is causing delays in Mexican heavy truck manufacturers’ investments? Uncertainty surrounding the T-MEC review and reduced demand for trucks in the US and Mexico.
- How are these companies addressing tariff concerns? By waiting for a trilateral agreement and preparing to increase regional sourcing.
- What is the current impact of the 25% US tariff on Mexican truck exports? It’s too early to measure the impact, but effects are currently manageable.
- What is Kenworth’s strategy to cope with tariffs and maintain regional integration? Strengthening the trilateral agreement, obtaining manufacturing supplier certifications, and relying on their production in both the US and Mexico.
- How has International Motors México responded to tariff policies? They have invested in infrastructure and continued their commitment to manufacturing in Mexico, despite tariffs.
