Mexico auto industry warns of complex outlook ahead of USMCA review

By Natalia Siniawski MEXICO CITY (Reuters) -Mexico's auto industry warned of a "complex outlook" ahead of the 2026 review of the United States-Mexico-Canada Agreement (USMCA), with executives citing concerns over tighter rules of origin and scrutiny of Asian content in components. Speaking at the CIAN automotive conference, heavy-vehicle manufacturers expressed concerns about meeting current USMCA trade requirements while adjusting to existing rules. The agreement mandates that a certain percentage of vehicle parts originate from North America to qualify for tariff-free access. "We moved to 64% in 2024 and must reach 70% by 2027; changing the rule now isn't viable," said Rogelio Garcia, head of the National Association of Bus, Truck and Tractor Truck Manufacturers (ANPACT), noting components often cross borders multiple times before final assembly. The industry's concerns come after U.S. President Donald Trump last week announced plans for 25% tariffs on imported heavy trucks. The USMCA, which replaced the North American Free Trade Agreement in 2020, is scheduled for review in 2026. Rogelio Garza, head of the Mexican Association of the Automotive Industry (AMIA), called for increased coordination among industry groups across North America, stating, "it's the same industry." Mexico also plans to raise tariffs on automobiles from China and other Asian countries to 50%, part of a broader overhaul of import levies aimed at protecting jobs and addressing U.S. concerns, according to analysts. Francisco Gonzalez, head of the national auto-parts association INA, highlighted the need for faster development of smaller local suppliers, known as Tier-2 and Tier-3 firms, to strengthen supply chains and boost capabilities in software and electronics. Despite the challenges, industry leaders expressed cautious optimism. "The outlook is complex, but we're prepared,” Garza said. (Reporting by Natalia Siniawski; Editing by Jamie Freed)

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