Mexico‘s auto parts exports were US$121.693 billion in 2024 and the National Auto Parts Industry (INA) projects that they will rise to US$124.014 billion in 2025.

Comparing the 2024 amount with 2023, these foreign sales increased at a year-on-year rate of 1.2 percent.

If the figure is compared to 2010, the cumulative increase is 137 percent.

Julio Galván, INA’s Manager of Economic Studies, showed the above data at a press conference on Monday in Mexico City.

Auto parts exports

In turn, Jose Rogelio Garza Garza, President of the Mexican Automotive Industry Association (AMIA), informed on Monday that 8.2% of the light vehicles exported from Mexico to the U.S. market comply with the rules of origin of the Mexico-U.S.-Canada Agreement (USMCA).

It also indicated that the corresponding percentage of auto parts exports is 20.4 percent.

Since March 4, U.S. customs began charging a general tariff of 25% on all imports of products originating in Mexico and Canada, although imports of Canadian energy-related goods are charged at a rate of 10%.

Negotiations

The 25 percent tariff imposed by President Donald Trump will drive an increase in Mexican exports to the United States under the USMCA. According to Marcelo Ebrard, Secretary of Economy, this percentage will increase from approximately 50 to 90 percent.

To export from Mexico, there are two alternatives. The first is to take advantage of the USMCA and avoid tariffs. The second is to comply with WTO rules and pay a 25% tariff. On average, the Most Favored Nation (MFN) tariff in the United States is 2.2% (trade-weighted average). 

Prior to Trump’s second term, exporting under MFN meant paying a reduced tariff. However, since March 4, companies must cover 25%, which significantly raises their export costs.