Mexican aerospace industry loses altitude due to Trump tariffs

Donald Trump's tariff policy is complicating the flight of the Mexican aerospace industry, which, although it continues to ship products, has seen a slowdown in exports.

In an interview with MILENIO, Luis Lizcano, CEO of the Mexican Aerospace Industry Federation (Femia), explained that from January to June 2025, the sector saw a 9 percent annual increase in total sales.

He also stated that this variation is much lower than in previous years, as after the pandemic, the industry had been growing at an average annual rate of 13 to 16 percent.

“Donald Trump's tariffs have created uncertainty and chaos, which is why we saw a slowdown in the first half of the year,” said the executive.

Since June, the US government has imposed a series of tariffs on aluminum and steel ranging from 25 to 50 percent on various countries, including Mexico, and has announced additional tariffs on other products starting August 1.

Luis Lizcano explained that of the country's 32 states, 20 have companies in this sector, but most are concentrated in Sonora, Chihuahua, Nuevo León, Baja California, and Querétaro.

The executive said that of the parts manufactured in Mexico for the aviation sector, 80 percent are destined for the United States, followed by Canada with 4.7 percent, France with 3.5 percent, and Germany with 3.2 percent.

According to the consulting firm Mordor Intelligence, the size of the aerospace industry in Mexico is estimated at US$11.2 billion in 2024 and is expected to reach US$22.7 billion in 2029.

In other words, it is estimated to grow at an average annual rate of 15.2 percent over the next five years.

“Like several industries in the Mexican economy, in 2020-2021, the aerospace industry was severely affected by the pandemic. Mexican exports fell by more than 20 percent, thus affecting overall market revenues,” the consulting firm said.

It highlighted that the country's aerospace industrial exports have increased over the last decade and a half at an annual rate of 14 percent.

“The favorable ecosystem for the manufacturing sector and low production costs in the country are attracting investments from aerospace manufacturing companies, thus driving market growth,” explained Mordor.

“According to Femia, Mexico's aerospace sector grew from 100 manufacturing companies and organizations in 2004 to around 370 in 2020,” she said.

Factors such as new initiatives to integrate smaller local suppliers into the Mexican aerospace industry, government support to help smaller companies, and opportunities generated by trade agreements between the United States, Canada, and Mexico (USMCA) are expected to improve the sector's contribution to the overall economy.