Mexico Seeks Tariff Exemption for Auto Industry Amid U.S. Trade Dispute

Mexico is negotiating an exemption for its crucial autos industry following the U.S. announcement of 25% tariffs on imported vehicles, which challenge the USMCA agreement. Mexican Economy Minister Marcelo Ebrard is in discussions with U.S. officials to ensure preferential treatment for Mexico to protect jobs and economic activity.

In a strategic move to protect its auto industry, Mexico is seeking an exemption from the steep 25% tariffs announced by the United States on imported vehicles. This development was confirmed by Mexico's Economy Minister Marcelo Ebrard on Thursday.

The tariffs, introduced by U.S. President Donald Trump, mark an escalation in the ongoing global trade war and pose a threat to the USMCA free trade agreement involving Mexico and Canada. Speaking from Washington, where Ebrard is actively engaging with top Trump administration officials, he stressed the importance of securing preferential treatment for Mexico.

Ebrard emphasized that if the U.S. introduces a new system with such high tariffs, Mexico must negotiate conditions that safeguard Mexican jobs and economic activities. While the plan grants partial exemptions for USMCA-compliant auto parts, these components must primarily comprise U.S.-produced content. In 2024, Mexico exported 2.5 million vehicles to the U.S., underscoring the significance of these negotiations.

(With inputs from agencies.)