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.

“At 64% in 2024, we must reach 70% by 2027; changing the rule now is not feasible,” said Rogelio García, president of the National Association of Bus, Truck and Tractor Manufacturers (ANPACT). He noted that components frequently cross borders multiple times before final assembly.

Concerns have risen following announcements of potential 25% tariffs on imported heavy trucks. The TMEC, which replaced NAFTA in 2020, is scheduled for a formal review in 2026.

Rogelio Garza, president of the Mexican Automotive Industry Association (AMIA), called for greater coordination among North American industry groups, stating, “It is the same industry.” Meanwhile, Mexico plans to raise tariffs on vehicles imported from China and other Asian countries to 50% as part of a broader import review aimed at protecting jobs and addressing US concerns, analysts said.

Francisco González, president of the National Auto Parts Association (INA), emphasized the need to accelerate development of smaller local suppliers, known as Tier-2 and Tier-3 companies, to strengthen supply chains and enhance software and electronics capabilities.

Despite these challenges, industry leaders expressed cautious optimism. “The outlook is complex, but we are prepared,” Garza said.