91% of Mexico’s automotive production complies with the USMCA: AMIA

The Mexican automotive industry is facing a moment of uncertainty due to the US government's intention to modify the rules of operation of the United States, Mexico and Canada Agreement (USMCA), which could alter the productive integration model that the sector has been developing for more than 30 years, warned the Mexican Automotive Industry Association (AMIA).

“The industry is in an 'impasse' waiting to see what finally happens (…) Now the date that is still important is April 2, to see what will happen of course the industry faces a risk, a change in the operating model,” said Rogelio Garza, president of the AMIA, on Grupo Financiero Banorte's ‘Norte Económico’ podcast.

Garza recalled that President Donald Trump has already imposed tariffs on products outside the USMCA before, so he revealed that only 9% of automotive production would not be exempt from the treaty.

“Everything that complies with the treaty in the automotive sector is about 91% of course there is 9%, which does not comply and that we are seeing what it is or how so that it can continue to be attractive to the Mexican market,” he said.

Garza explained that if tariffs or sanctions were imposed, the three North American countries would automatically be affected due to the high interdependence of the supply chains.

Mexico's automotive industry had a historic performance in 2024: almost 4 million vehicles manufactured, of which 3.6 million were exported, 80% of them to the United States.

These results placed Mexico as the world's fifth largest vehicle producer, after ranking seventh in 2023.

The automotive industry represented almost 5% of Mexico's GDP at the end of 2024 and its products accounted for 32% of Mexico's total exports.