Mexico Faces 25% US Truck Tariff as Auto Leaders Sound Alarm

This week in automotive news: Mexico prepares for the effects of Trump’s 25% truck tariff while awaiting its official publication. At CIIAM 2025, industry leaders flagged stricter USMCA rules and supply chain pressures, as Stellantis ramps up local sourcing to comply. Meanwhile, investment in Puebla has fallen sharply, and Mexico is pushing forward on decarbonization through AI and automation.

More updates below:

Mexico Awaits US Tariff Publication Before Acting, Says Ebrard

Mexico’s government will wait for the official publication of tariffs announced by US President Donald Trump before deciding on a response, Economy Minister Marcelo Ebrard said on Sep. 30. The measures target heavy vehicles, pharmaceutical products, and other goods.

CIIAM 2025 Highlights USMCA Review, Supply Chain Integration

The XXIII International Congress of the Automotive Industry in Mexico (CIIAM 2025) was held on Oct. 1-2 in Mexico City, gathering leaders from government, business chambers, and OEMs to discuss challenges ahead of the 2026 USMCA review, tariff uncertainty, and the transformation of regional supply chains.

Tesla Faces Lawsuit Over Alleged Cybertruck Door Failure

Tesla is facing new legal and governance challenges that could affect its operations and investor confidence. The family of 19-year-old Krysta Tsukahara filed a wrongful death lawsuit alleging she was trapped inside a Cybertruck following a crash in Piedmont, California, in November 2024. The complaint states that “the electronic door handles failed after impact, preventing passengers from escaping a fire.” Tesla and the estate of the vehicle’s driver are named as defendants.

Mexico’s Auto Sector Flags USMCA Review Risks, Stricter Rules

The Mexican automotive sector flagged potential challenges ahead of the 2026 review of the United States-Mexico-Canada Agreement (USMCA), citing stricter rules of origin and increased scrutiny of Asian content in vehicle components. Industry executives highlighted possible compliance issues with trade requirements and the adaptations needed to meet current regulations.

Stellantis Mexico Increases Local Procurement to Meet US Rules

Stellantis Mexico is increasing local procurement to meet North American supply chain requirements and adapt to new US tariffs, the company’s purchasing director said Oct. 2. Evelin Nava Castaldi, director of Purchasing, outlined the company’s strategy to strengthen Tier 1, Tier 2, and Tier 3 supplier networks and boost regional content during her presentation on the first day of CIIAM 2025.

Puebla Investment Plunges 61% in 1H25 Amid US Auto Tariffs

Puebla experienced a 61% decline in investments during the first half of 2025, largely driven by US tariffs affecting the automotive industry, a cornerstone of the state’s economy. According to Carlos Sosa, president, National Chamber of the Transformation Industry (CANACINTRA) in Puebla, the drop is linked to uncertainty among national and foreign investors.

Trump’s 25% Truck Tariff Targets Mexico’s Vehicle Exports

President Donald Trump announced that beginning Nov. 1, all medium- and heavy-duty trucks imported into the United States will face a 25% tariff. The measure, he said, is intended to “protect US truck manufacturers from unfair outside competition,” citing companies such as Paccar-owned Peterbilt and Kenworth, and Daimler Truck’s Freightliner. The new rate covers delivery, garbage, and utility trucks, as well as school buses, tractor-trailers, and other heavy-duty vocational vehicles.

Puebla Enforces Third-Party Car Insurance After SCJN Ruling

Drivers in Puebla are now legally required to carry third-party liability insurance for their vehicles, after the Supreme Court of Justice of the Nation (SCJN) upheld the constitutionality of the mandate. The ruling validates a 2023 reform to Puebla’s Mobility and Road Safety Law, which requires all motorized vehicles to have insurance covering damages caused to others.

Decarbonizing Mexico’s Auto Industry Through AI and Automation

Mexico’s path toward decarbonization is increasingly shaped by Industry 4.0 technologies that integrate automation, digital tools, and green energy systems. These innovations are transforming manufacturing efficiency, transportation, and resource use, while advancing the country’s broader sustainability goals. Yet, financing, regulation, and infrastructure remain major challenges for scaling clean technologies.

BYD Leads Tesla in EV Deliveries Despite Overall Sales Decline

BYD has surpassed Tesla in global battery-electric vehicle (BEV) sales for the fourth consecutive quarter, extending its lead despite recording its first overall sales decline in 18 months. The Chinese automaker delivered nearly 390,000 more BEVs than Tesla in the first nine months of 2025, according to Bloomberg data.

PROFECO Warns of Seat Sensor Faults in Honda, Acura Vehicles

Mexico’s consumer protection agency (PROFECO) issued an alert for at least 1,375 Honda and Acura vehicles due to a passenger-seat sensor fault that may affect airbag operation. The issue involves the internal circuitry of the weight sensor, which can trigger the airbag warning light even when the system is inactive, potentially causing driver confusion.

Tesla Unveils Cheaper Model Y, Model 3 as US EV Tax Credit Ends

Tesla unveiled more affordable versions of its Model Y and Model 3 vehicles on Oct. 7, aiming to  offset the expiration of the US$7,500 federal tax credit for electric vehicle buyers in the United States. The Model Y Standard is priced at US$37,990, while the Model 3 Standard starts at US$34,990, both below the “Premium” versions priced at US$44,490 and US$41,990, respectively.