Mexico calls on automakers with plants in the nation to comply with T-MEC

The Mexican government announced on Thursday that it is in talks with executives of international automobile firms with plants in the country to ensure that they comply with the rules of origin of the Treaty between Mexico, the United States, and Canada (T-MEC) and therefore avoid US tariffs.

When asked about President Donald Trump’s automotive tariffs, President Claudia Sheinbaum revealed that she has «been in contact with the general managers of Mercedes Benz, BMW, and Volkswagen,» all of which build autos in Mexico.

Sheinbaum praised Trump’s exemption of T-MEC products from the new US tariffs, which ask for a minimum of 10% globally and higher rates in other countries.

However, 25% taxes on industries outside the deal will remain in place, in addition to 25% levies on steel, aluminum, and autos assembled in Mexico for non-US components.

In this context, the president considered that if foreign automakers in Mexico use US components or bring more production lines to the country “it would also mean greater content of origin” which would facilitate their protection under the trade agreement with the US and Canada.

Trump’s measures threaten the automotive industry in Mexico, which represents almost 4% of the national gross domestic product (GDP), almost 3 million vehicles exported to the US per year and 20.5% of the manufacturing GDP, more than any other sector, according to the Mexican Automotive Industry Association (AMIA).