North America’s automotive industry intends to maintain its integrated supply chain despite trade-related pressures emerging in the United States ahead of the upcoming review of the United States-Mexico-Canada Agreement (USMCA), stated José Rogelio Garza, Executive President of the Mexican Automotive Industry Association (AMIA).
Garza noted that the automotive sector—representing nearly 4% of Mexico’s GDP—will continue advocating for competitive trade conditions, including the removal of tariffs, to ensure the region remains aligned with global markets.
He explained that a 25% tariff is still applicable in some cases and emphasized that the industry will continue pushing for tariff-free access, which has been a key driver of growth in the past three decades.
Despite political pressure, Garza underscored that the industry is prepared to defend current rules of origin, eliminate existing tariffs and preserve the productive integration that has strengthened the regional value chain.
Mexico exports more than 3.5 million vehicles annually, with approximately 2.85 million heading to the United States. “This reflects the strategic relevance of the North American market,” he said.
Between January and November, the sector remained relatively stable compared to the previous year, reporting slight decreases of 1.5% in production and 1.6% in exports, as well as a 1% increase in domestic sales.
Garza highlighted the depth of trilateral integration, noting that some auto parts cross borders up to seven times before final assembly. “This industry cannot operate independently,” he said, adding that cooperation among Mexico, the United States and Canada has been essential to the region’s development.
North America currently produces around 17 million vehicles annually, while China manufactures more than 31 million. For that reason, Garza stressed the need to strengthen regional collaboration to maintain global competitiveness.
He also noted that the United States has already initiated consultations regarding rules of origin, while Mexico is advancing domestic policy proposals, such as potential tariffs on imported finished vehicles intended to reinforce national production.
According to Garza, the industry supports initiatives aimed at creating balanced competitive conditions.
He concluded by emphasizing the sector’s economic relevance in Mexico, where an estimated 11,000 vehicles are produced daily, requiring the mobilization of roughly 1,000 freight trucks and thousands of tons of components.
Despite ongoing political discussions, Garza stated that the U.S. and Canadian automotive industries share a common stance: maintaining the USMCA framework is essential for the future of North America’s automotive competitiveness.
Source: Forbes México
