Mexico and the U.S. need cooperation, not tariffs that affect competitiveness

• Tariffs on automobiles create instability on international trade and jeopardize jobs throughout the value chain.
• In this scenario, it is essential to strengthen the domestic market, diversify exports, and ensure fair trade conditions within the USMCA.

The imposition of 25% tariff on cars manufactured outside the United States represents a direct threat to the region’s automotive industry. Considering this context, at the Mexican Employers’ Confederation (COPARMEX), we believe that this protectionist measure raises vehicle prices, reduces competitiveness, and jeopardizes thousands of jobs in the region. We cannot allow these decisions to affect trade, and productive integration that has been built over decades.

Mexico is the main supplier of cars to the U.S. market and is part of a highly integrated supply chain. According to INEGI´s data, in 2024, Mexico exported nearly 3.5 million light vehicles, with 80% destined for the U.S. These tariffs will not only impact national exports but will also increase costs for consumers in the United States, potentially leading to reduced demand and impacting sector stability. The uncertainty generated undermines investor confidence and hampers economic growth in both countries.

In this context, the Mexican Government must act decisively to defend national interests. It is crucial to demand compliance with commitments made under the USMCA and seek mechanisms to counteract the effects of these tariffs. We cannot rely on the will of a single country to ensure the growth of our economy. It is urgent to strengthen the domestic market and diversify exports to reduce vulnerability to protectionist measures.

The automotive industry is a cornerstone of the Mexican economy, and its competitiveness cannot be undermined by arbitrary decisions. Given this outlook, a clear strategy is needed to provide certainty to businesses and ensure conditions of fair competition. Strengthening investment, innovation, and promoting new trade opportunities must be priorities on the country’s economic agenda.

We reiterate our commitment to defending businesses established in Mexico and seeking solutions that protect the development of the productive sector. It is time to reinforce dialogue with our trading partners, explore new alliances, and demand a framework of clear rules to prevent the imposition of measures that distort trade.

Mexico’s future cannot be subject to unilateral decisions that threaten our economy. We must promote a firm and proactive foreign policy that promotes stability and growth for our country. At COPARMEX, we will work to ensure that the business sector is prepared and that the government acts with the necessary firmness in defending national interests.