Mexican Auto Executives Stand Firm Amid Tariff Tensions

Mexican President Claudia Sheinbaum announced that most automobile executives with plants in Mexico have no plans to move factories despite ongoing tariff tensions. Mexico remains unaffected by the new tariffs but is still subject to existing ones on steel, aluminum, and vehicles. Discussions in Washington are set to address the issue.

Mexican President Claudia Sheinbaum asserted on Tuesday that the majority of automobile executives with factories in Mexico currently have no plans to relocate their operations, despite prevailing tariff concerns.

Addressing her morning press conference, Sheinbaum disclosed conversations with CEOs and global managers who reassured her of maintaining their current manufacturing positions. Mexico, which exports nearly 80% of its products to the United States, was notably missing from the list of countries affected by President Trump's recent global tariff announcements.

However, Mexico continues to face previous tariffs on steel, aluminum, and automobiles, as well as goods not in line with the USMCA trade agreement. Economy Minister Marcelo Ebrard is slated to meet with U.S. Commerce Secretary Howard Lutnick in Washington to discuss these ongoing tariff issues, noted Sheinbaum, who indicated a preference for avoiding reciprocal tariffs, though did not dismiss the possibility.

(With inputs from agencies.)