Mexico Auto Sector Heads for 10% Decline as US Tariffs Bite
MEXICO · INDUSTRY Key Facts —What happened: Mexico’s auto exports to the United States fell 11.3 percent in the first quarter of 2026, to US$38.1 billion. —The trend: Passenger-car exports fell 9.8 percent in 2025 and dropped a further 22 percent in early 2026. —The cause: Washington charges a 25 percent tariff on Mexican-made cars […] The post Mexico Auto Sector Heads for 10% Decline as US…
Mexico’s auto exports to the United States plunged 11.3 percent in the first quarter of 2026, plummeting to US$38.1 billion. Passenger-car exports saw a 9.8 percent decline in 2025 and a further 22 percent drop in early 2026. The trade dispute stems from a 25 percent tariff imposed by Washington on cars that fail the trade pact’s origin rules.
Vehicles meeting the pact's rules still enter duty-free, determining who pays the tariff. The auto sector accounts for 3.6 percent of Mexico's GDP and employs over one million workers. Negotiations in Washington in September will address the auto rules of origin, with the industry facing a projected 10 percent decline this year due to the tariff impact.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
