AMIA Backs Tariff Plan as 2026 USMCA Review Nears

Mexico’s automotive sector is bracing for legislative decisions on new tariffs for vehicles and auto parts imported from countries that lack a trade agreement with Mexico, while also defining its priorities ahead of the 2026 review of the USMCA. The Mexican Automotive Industry Association (AMIA) said the proposed tariffs—reaching up to 35%—are key to safeguarding domestic production and preserving North America’s competitiveness. The association reiterated that the USMCA must remain in force, calling it the only framework that enables the region to compete with global manufacturing hubs.

“We fully support this measure. We back the Ministry of Economy for introducing this initiative and for advancing policies that protect and strengthen national industry and the companies that invest, produce and generate employment in Mexico,” said Rogelio Garza, Executive President, AMIA.

Garza said the proposal responds to growing competition from countries without trade agreements, pointing to China’s scale. “Last year, China produced about 31 million vehicles. In the Americas, we produced around 18 million—almost half. If we do not reinforce the region, others will surpass us,” he said.

While AMIA supports tariffs on fully assembled vehicles, the association urged lawmakers to exempt critical auto parts to prevent disruptions to domestic production. “We are asking for essential inputs to be excluded from the decree,” Garza said, adding that the final terms will depend on ongoing congressional negotiations.

The measure is expected to take effect on Jan. 1, pending legislative approval and Senate review. Garza said AMIA will closely follow the process. “We will be vigilant about the debates and the final decision in Congress.”

Looking beyond the tariff discussion, AMIA outlined strategic priorities as the sector prepares for the 2026 USMCA review. Garza stressed that maintaining the agreement is crucial to Mexico’s competitiveness. “I am confident we will reach a deal,” he said. “It will be a complex negotiation, but it will ensure Mexico remains an attractive hub for production and exports.”

Mexico exports roughly 3.5 million vehicles annually, with around 2.85 million destined for the US market. The automotive sector represents 4.5% of national GDP. Garza highlighted deep regional integration as one of the industry’s greatest strengths. “We are highly integrated in North America thanks to NAFTA and now USMCA,” he said.

He added that auto parts may cross borders up to seven times during the manufacturing process, illustrating the interdependence among US, Canadian, and Mexican producers. “The automotive industries of the three countries are aligned. We need coordinated actions from all three nations to continue strengthening this sector,” he said. “If we do not work together as a region, we will not be able to compete globally.”