Automakers Will Stay in Mexico Despite US Tariffs: Sheinbaum

President Claudia Sheinbaum stated that global automotive manufacturers with operations in Mexico are not currently planning to relocate their plants in response to new tariffs imposed by US President Donald Trump.

“Most of them have told us they are not considering any changes for now and are waiting for the situation to stabilize. Relocating an automotive plant is not a simple process–it requires significant investment and takes years, not months,” said Sheinbaum during her morning press conference.

Sheinbaum emphasized that her administration has maintained direct communication with CEOs of global automotive companies to monitor their long-term strategies amid the new trade barriers. “I have personally spoken with several global managers of automakers to understand their plans regarding our country. So far, none of them has mentioned plans to move operations,” she said.

Her remarks come after the US government imposed a 25% tariff on imported light vehicles from countries outside the USMCA framework, while Mexico and Canada were granted differentiated treatment. The President highlighted that, although the situation is not ideal, Mexico retains a relatively favorable position due to its integration with the US supply chain.

“To be clear, the 25% tariff on light vehicles applies globally. In Mexico’s case, complete vehicles are subject to this tariff, but parts currently have a 0% rate unless adjusted by the US Department of Commerce based on US content,” Sheinbaum explained.

Sheinbaum also confirmed that Minister of Economy Marcelo Ebrard traveled to Washington to meet with US Secretary of Commerce Howard Lutnick to continue discussions on the automotive tariffs, as well as duties on steel and aluminum.

“Nissan recently moved production of a pickup truck from another country to Mexico,” Sheinbaum noted, citing Nissan’s production realignment as an example of continued confidence in Mexico’s automotive sector. 

In March, Nissan announced plans to consolidate its Latin American manufacturing of the Frontier model at its CIVAC plant in Morelos.

“We have space in CIVAC to do more, so we have consolidated production here. It’s not a new investment, but rather an optimization of existing capacity,” said Rodrigo Centeno, CEO, Nissan Mexicana.

Nissan’s decision involves ceasing production of the Frontier pickup in Argentina and centralizing it in Mexico. The move aligns with the company’s broader strategy to improve operational efficiency and address global cost pressures. The CIVAC facility, operational since 1966, had been running below maximum capacity in recent years.

Data from Mexico’s National Institute of Statistics and Geography (INEGI) shows that in 2018, 75% of Nissan’s vehicles manufactured in Mexico were exported to the United States. That figure has declined to 50% in 2025. Currently, around 35% of Nissan’s Mexican production is sold domestically.