Auto, Truck Sectors Back 50% China Tariffs; EVs Raise Concerns

Mexico’s automotive and heavy truck industries have expressed support for the government’s proposal to impose tariffs of up to 50% on vehicles imported from China, citing the need for a “level playing field” and fair market conditions. However, the country’s electric vehicle sector warns that the measure could slow the adoption of cleaner mobility solutions.

The Mexican Automotive Industry Association (AMIA), which represents traditional automakers such as General Motors, Nissan, Toyota, Kia, Volkswagen, and JAC, called the tariffs “positive” for promoting investments in Mexico. In a statement, AMIA said the reforms to the General Import and Export Tax Law, introduced by the federal government, aim “to guarantee free competition under market conditions, promote investments within the framework of Plan México, and support companies that create and invest in Mexico.”

AMIA added that the measure ensures “any company participating in the Mexican market does so under equitable conditions, in compliance with the legal and regulatory framework.” The organization, together with the Mexican Automotive Dealers Association (AMDA), has also requested greater transparency in sales data from certain Chinese brands, including BYD, Geely, GAC, Bestune, Jetour, and Chirey, to allow consumers to make more informed decisions. “It is essential that all market players report their data. This is fundamental to understand the full market behavior and provide transparency about vehicle sales,” the statement read.

The National Association of Bus, Truck, and Tractor Manufacturers (ANPACT), representing the heavy truck segment, also supported the tariffs, emphasizing that some Chinese companies have been selling trucks at dumping prices, “leaving other manufacturers operating in the country outside fair competition.” “We have not seen a level playing field in that sense. We believe public policies should ensure fairness in competition, customs, and regulations. Everyone must comply with the same requirements,” said Rogelio Arzate, President, ANPACT, in an interview with El Economista. 

While automotive and heavy truck associations welcome the measure, the Electric Mobility Association (EMA) warned that tariffs could negatively impact the adoption of electric and hybrid vehicles in Mexico. EMA, representing more than 23 companies including BYD, Tesla, Volvo, and Vizeon, said that “increasing the cost of access to electric vehicles would constitute a setback in meeting national and international targets. Achieving these goals is not only an environmental commitment but also a historic opportunity in public health, competitiveness, and economic development,” stated Eugenio Grandio, President, EMA.

EMA cited studies by the International Council on Clean Transportation showing that from 2021 to 2024, electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs) saw price reductions of 37% and 35%, respectively, while internal combustion vehicles increased on average by 24%. Grandio warned that tariffs would counteract this trend, raising vehicle prices and reducing competition.