Mexico Urges US to Reconsider 25% Truck, 100% Pharma Tariffs

Mexico is urging the United States to reconsider new import duties on heavy vehicles that could affect cross-border trade, President Claudia Sheinbaum said on Sept. 29. Her remarks follow US President Donald Trump’s announcement last week of a 25% tariff on imported heavy vehicles and a 100% tariff on branded pharmaceuticals, both scheduled to take effect this week.

“We are already in talks, hoping there will be consideration for Mexico,” Sheinbaum said during her daily press conference. “If not, it would create problems even in the United States.” She emphasized the high integration of the two economies, particularly in the automotive sector. “The commercial relationship with the United States remains very important and Mexico has a very large competitive advantage,” she noted, highlighting cross-border supply chains for trucks and components.

Most Mexican exports to the United States continue to benefit from zero tariffs under the United States-Mexico-Canada Agreement (USMCA). “Except for finished vehicles and steel, exports in other sectors have increased in recent weeks thanks to the zero-tariff provisions of the trade agreement,” Sheinbaum said.

Trump announced the measures on Sept. 25, citing trade imbalances. The 25% duty targets trucks and large commercial vehicles entering the United States, while the 100% tariff applies to branded pharmaceuticals. Mexican officials are in communication with US counterparts to clarify the impact and provide data on how the heavy-vehicle supply chain supports US manufacturers and distributors. “The goal is to avoid disruptions in a sector that is vital for both countries,” Sheinbaum said.

Large US truck manufacturers—including Peterbilt, Kenworth, Freightliner, and Mack Trucks—are expected to be shielded from immediate market disruptions, according to Trump. However, Mexico remains the largest exporter of medium- and heavy-duty trucks to the US, followed by Canada, Japan, Germany, and Turkey, per the Commerce Department’s International Trade Administration.

Domestic heavy-truck manufacturers may see limited benefit if materials for production continue to face high duties, said David Forgue, partner, Chicago law firm Barnes, Richardson & Colburn. The overall impact depends on whether “tariff offsets,” similar to those on light-duty vehicles, are implemented.

The German automotive industry association called the US measure “incomprehensible,” warning that the tariffs could raise costs, weaken supply chains, and affect investment and employment. This concern is amplified by Mexico’s role in North America’s heavy-truck market, hosting 14 bus, truck, and tractor manufacturers and assemblers, two engine producers, and producing 95% of the trucks entering the United States.

Analysts estimate significant potential losses for multinational manufacturers. Citi projected that a 25% tariff on trucks assembled in Mexico could reduce Daimler Truck’s earnings by US$818 million to US$934 million, though higher prices could offset some losses. Companies such as Stellantis, which produces Ram trucks and commercial vans in Mexico, and Volvo Group, which is building a US$700 million facility in Monterrey, may also face disruptions.