Tariff on Heavy Vehicles Violates USMCA: Ebrard

Mexico will seek to negotiate an adjustment with the United States regarding tariffs on medium- and heavy-duty vehicles manufactured in Mexico, citing violations of the US-Mexico-Canada Agreement (USMCA), says Minister of Economy Marcelo Ebrard .

In a press conference, Ebrard described the new US tariff as a “violation” of the trade agreement. “The first thing we will request from the United States is to comply with the provisions of the treaty, that parts and components made in Mexico must receive the same treatment as those made in the United States. This is a violation of the Free Trade Agreement,” he says.

The new 25% US tariff, effective Nov. 1, applies to medium- and heavy-duty vehicles imported from Mexico, despite the fact that roughly 60% of their components are sourced from the United States. Ebrard says that Mexico will propose a system of tariff reductions similar to that applied to light vehicles, where the effective rate decreases depending on the proportion of US-made components. “The effective rate would be 10% or lower,” he adds.

Ebrard says that this tariff issue will be a “top priority” in the next scheduled USMCA review, planned for 2026.

The announcement followed the presentation of the “Agreement on Environmental Conditions for the Import of Used Vehicles,” developed jointly with Minister of the Environment Alicia Bárcena. The agreement prohibits the import of used diesel-powered vehicles with a gross vehicle weight over 3,857kg and sets a maximum vehicle age of 10 years for imports into Mexico.

Bárcena highlights that diesel vehicles make up 5% of Mexico’s fleet but generate 61% of pollutants, including suspended particles and sulfur oxides. “These are the particles we breathe from emissions, especially sulfur oxides, which come from diesel,” she says.

Ebrard notes that under the new environmental agreement, “tens of thousands of vehicles” will no longer be imported into Mexico by 2026 due to their high pollution levels.