The Executive President of the Mexican Association of Automotive Distributors (AMDA), Guillermo Rosales Zárate, warned about the impact that the 25 percent tariff imposed by the U.S. government in April on certain automotive units has had on Mexican vehicle exports.
According to Rosales, around 8% of vehicles exported from Mexico to the U.S. are subject to this tariff, as they do not meet the regional content requirements established in the United States-Mexico-Canada Agreement (USMCA). This situation resulted in a 2.8% decrease in exports during the first half of the year.
“There is indeed an impact, and 8 percent of the vehicles exported to the United States are paying the 25 percent tariff. This led to a 2.8 percent drop in vehicle exports by the end of the first half of the year,” he explained.
Rosales pointed out that although the decline is already visible, the full effect has yet to be felt, due to inventories accumulated by automakers in the U.S. before the tariff took effect. These inventories continued to be distributed during the second quarter without immediately reflecting the increased costs.
Despite this context, the month of June saw a recovery with a 14% rebound in Mexican exports, following three consecutive months of decline. “This required import volumes to recover, which is why we saw a 14 percent increase in Mexican exports during June,” said Rosales.
Looking ahead to the second half of the year, the executive anticipated a more challenging environment for U.S. manufacturers, who have so far absorbed the additional costs without passing them on to the final consumer. However, he warned that this scenario might not be sustainable and could lead to further impacts on the region’s automotive industry.
Source: XEU Noticias
