(solusikaki.com) -- Mexico aims to increase the portion of vehicles manufactured domestically required to be considered as having US origins, which could mitigate the effects of President Donald Trump’s tariffs, according to Deputy Economy Minister for Foreign Trade Luis Rosendo Gutierrez.
Facing 25% tariffs across numerous goods, Latin America’s second-biggest economy is swiftly taking steps to safeguard its automobile exports to the U.S., which represent one of its key exports under the regional free trade deal encompassing the U.S. and Canada.
"When discussing automobiles, we aim to address certain elements of the manufacturing process with the goals of boosting American content and enhancing deductions," Gutierrez stated during the sights and Innovation Summit in Mexico City on Thursday, as reported by solusikaki.com.
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Gutierrez forecasted that the US-Mexico-Canada Free Trade Agreement, which Trump signed during his initial term, would become stronger. However, he mentioned that Mexico aims to establish a more efficient dispute resolution mechanism. Gutierrez noted this stance. previously said The 2026 review process for the agreement, referred to as the USMCA, might be accelerated under Trump.
"We're set to experience more tariffs in the upcoming years, and we'll need to adapt to a system where the primary focus isn’t achieving zero percent tariffs, but rather securing the lowest possible rates compared to others in the market. This is how our nation aims to progress daily," he stated.
Mexican authorities have stated they will keep discussing with U.S. officials about taxes on steel, aluminum, and vehicles before the May 3rd deadline established by the Trump administration for imposing tariffs on car components.
Several issues might advance within that period, including the tariffs on these three major goods, along with Sino-North American ties, and the forthcoming USMCA evaluation, noted Judith Garza Rangel, who heads up a commercial guidance panel dubbed "cuarto de junto." This team is formulating a series of specialized suggestions for the Economy Ministry prior to engaging in USMCA negotiations.
Across the affected industries, companies are evaluating these new tariffs, and this includes steel manufacturer Ternium, where Garza Rangel serves as a senior institutional director. She stated during an event that they are "controlling expenses, striving for greater efficiency, and gearing up through training sessions to gain clearer insights into the situation and adjust accordingly."
The continuous discussions about tariffs might result in an earlier comprehensive assessment of the trade agreement involving North American nations, noted Rogelio Garza Garza, who serves as the executive president of AMIA, the automotive association, and previously held the position of deputy economy minister focusing on industry.
We're about to enter the review phase, and we're being urged towards it," Garza said. "Accelerating these processes could bring benefits by eliminating uncertainty and reaching accords. We must also keep striving for the ratification of the USMCA.
Garza expressed his belief that Mexico will secure an agreement with the US regarding the automotive industry, pointing out that the US proposal concerning automobile components "doesn't seem sustainable over time."
(Updated with more details from the event)
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