Trump Increases USMCA Auto Content Rules: Auto Week

This week in auto news: Trump’s executive orders have tightened USMCA auto content rules and restructured tariffs, prompting Hyundai to shift production to the United States. Mexico now faces mounting pressure to maintain its manufacturing competitiveness amid rising protectionist policies.

Meanwhile, BYD’s Denza has entered the premium EV market, and Toyota is considering a US$42 billion supplier buyout, marking significant shifts across the automotive supply chain.

Start your engines—this is the week in automotive!

Trump Raises USMCA Auto Content Rule to 85%

US President Donald Trump has signed an executive order raising the Regional Value Content (RVC) requirement for vehicles and auto parts under the USMCA from 75% to 85%.

Trump Signs Order Easing Auto Tariffs, Adds Manufacturer Relief

President Donald Trump signed an executive order on Tuesday aimed at easing the financial burden of US automotive tariffs, according to White House officials. The order prevents overlapping tariffs on imported vehicles and components and establishes a temporary reimbursement program for manufacturers affected by prior duties.

Automakers Push Congress to Halt California's 2035 Gas Car Ban

The Alliance for Automotive Innovation, which represents major automakers such as General Motors, Toyota, Volkswagen, and Hyundai, is urging the US Congress to overturn California’s plan to ban the sale of gasoline-only vehicles by 2035.

New Auto Industry Era: Innovation, Sustainability for Growth

With a focus on sustainability and innovation, Mexico is well positioned to face future challenges and seize the opportunities presented by the new era of mobility. As the country continues to move toward a more sustainable industry, automotive manufacturing will remain a key pillar of its economy.

Toyota Eyes US$42 Billion Buyout of Key Supplier

Toyota announced it is exploring a potential US$42 billion buyout of Toyota Industries, a key supplier with which it has deep historical ties. 

BYD's Denza Launches EVs, PHEVs in Mexico, Targets Premium Market

Denza, BYD’s premium brand, is set to officially launch operations in Mexico in 3Q25, targeting premium consumers traditionally served by BMW, Audi, Lexus, and Mercedes-Benz. The launch will feature three electrified models: the Denza Z9 GT, Denza D9, and Denza B5, with a focus on electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) in line with BYD’s global zero-emissions mobility goals.

Nissan Mexico Imports First Model Assembled in India

Nissan Mexico has begun importing the new Magnite, a subcompact SUV, from India for the Mexican market. Nissan’s Magnite targets the high-volume segment of city SUVs. According to Nissan, this model marks the first time Nissan Mexico commercializes a vehicle assembled in India, a country gaining importance in the automaker's global export strategies. 

Hyundai Shifts Tucson Production to the US to Avoid Trump Tariffs

In response to growing protectionist measures led by US President Donald Trump, Hyundai Motor has announced the relocation of a portion of its Tucson SUV production from its plant in Pesqueria, Nuevo Leon, to the United States. The move aims to avoid the 25% tariffs imposed on foreign-made vehicles and auto parts, which took effect on April 3.

Tariffs Are Rising. Efficiency Needs to Rise Faster

Mexico’s position as a manufacturing hub, particularly for the automotive sector, has long been built on three pillars: cost competitiveness, logistical proximity to the United States, and skilled labor. Tariffs strike directly at the first of those pillars.

Volkswagen Launches New Sustainability Website

Volkswagen Mexico has launched a new website dedicated to sustainability, aligning with the global Regenerate+ strategy of the Volkswagen Group. The platform outlines the company's sustainability initiatives, goals, and commitments under three core pillars: Nature, People, and Society.