Mexico. The Mexican automotive industry expressed its concern about the entry into force of the 25% tariffs imposed by the United States on products from Mexico and Canada, under the International Emergency Economic Powers Act (IEEPA).
According to the sector, this measure will affect regional competitiveness, increase inflation and put jobs at risk in the three countries.
In a joint statement, the Mexican Association of the Automotive Industry (AMIA), the National Auto Parts Industry (INA), the Mexican Association of Automotive Distributors (AMDA) and the National Association of Bus, Truck and Tractor Producers (ANPACT) warned that the new tariffs will impact the stability of supply chains, key to the region's economy.
The automotive sector in North America operates with deep integration, where components and vehicles cross borders several times before their final assembly. The associations warned that these tariffs directly affect the efficient manufacture of light and heavy vehicles, increasing production costs and reducing competitiveness compared to other regions.
In addition, the Peterson Institute for International Economics estimates that the U.S. economy could contract by 0.5% by 2027 due to the measure, while inflation could rise by as much as four percentage points in 2025, making essential goods more expensive and affecting both consumers and businesses.
The impact of the decision has already been reflected in the financial markets, with falls in the main stock market indices, which shows the uncertainty generated among investors and economic actors.
Actions of the sector and diplomatic efforts
The sector's associations in Mexico indicated that they will continue to work in coordination with their counterparts in the United States and Canada to expose the risks of these measures and defend free trade in the region.
For its part, the Mexican government, headed by President Claudia Sheinbaum, has initiated diplomatic efforts to reverse the imposition of tariffs, betting on dialogue as a way to avoid further effects on trilateral trade.
The associations highlighted that automotive companies have made significant investments in the region, generating employment and strengthening the economy of the three countries. In this context, they considered it essential to avoid decisions that could weaken productive integration and shared economic development.
