Mexico’s Auto Exports to US Face Lower 15% Tariff Under USMCA Rules

Mexico’s Economy Minister Marcelo Ebrard announced that vehicles assembled in Mexico and exported to the United States will be subject to an average tariff of 15%, rather than the full 25% recently imposed by the Trump administration. Speaking at a public event, Ebrard emphasized that this reduced rate stems from trade discounts available under the United States-Mexico-Canada Agreement (USMCA).

While the U.S. officially implemented a 25% tariff on all non-domestically produced vehicles starting last month, Mexico and Canada benefit from preferential treatment under the USMCA. Mexican carmakers can reduce tariffs by certifying the percentage of each vehicle composed of U.S.-made components. If approved by the U.S. Department of Commerce, the 25% tariff only applies to the non-U.S. portion of the vehicle, resulting in an average rate of 15% for compliant Mexican exports.

To qualify, companies must submit documentation verified by internal officers, valid for six months. However, if U.S. Customs determines that a company exaggerated its U.S. parts content, the full 25% tariff may be applied retroactively.

Mexico, a major automotive hub, exports a significant volume of vehicles to the U.S. market. The Trump administration has faced criticism from automakers and trade groups over the economic impact of its blanket auto tariffs. Industry leaders have urged Washington to recognize existing regional trade frameworks that incentivize integrated supply chains across North America.

Ebrard acknowledged the competitive advantage of Mexico’s tariff relief, though he reiterated the country’s hope for eventual zero tariffs under future trade negotiations. The announcement comes as both Mexican exporters and U.S. importers adjust to the evolving automotive trade environment.