Mexico’s Economy Minister Marcelo Ebrard said on Monday that Mexican-made vehicles exported to the United States will face an average tariff of 15%, rather than the widely feared 25%, under newly announced U.S. trade measures. The clarification comes as automakers and trade officials scramble to assess the impact of President Donald Trump’s updated tariff policies targeting foreign auto imports.
Ebrard, speaking to reporters in Mexico City, said ongoing negotiations with U.S. trade representatives had helped soften the blow of the initial 25% blanket tariff Trump proposed earlier this month. “There’s no 25% universal tariff,” Ebrard explained. “The effective rate for most Mexican car exports will be closer to 15%, and in some cases even lower.”
The Trump administration’s recent move to raise tariffs on imported vehicles has sent shockwaves through the auto industry, sparking concerns over supply chain disruptions, higher consumer prices, and deteriorating trade relations. While the U.S. president argues the tariffs are meant to protect American jobs and industry, critics warn the measures risk harming allies and escalating trade tensions across North America.
Ebrard emphasized that the Mexican government remains committed to maintaining trade stability under the United States-Mexico-Canada Agreement (USMCA), even as Washington takes unilateral steps. “We continue to push for fair and reciprocal trade,” he said. “Our dialogue with the U.S. remains open, and we are defending Mexico’s economic interests.”
Automakers, especially those with major operations in Mexico—such as General Motors, Ford, and Volkswagen—are still evaluating how the tariff adjustment will affect costs and production. Mexico is a key manufacturing hub for North American car production, exporting millions of vehicles annually to the U.S. under favorable trade terms since the NAFTA era.
Industry analysts say even a 15% tariff could significantly disrupt the sector. “It’s better than 25%, but this is still a major hit,” said Kristin Dziczek, senior vice president at the Center for Automotive Research. “Margins are thin in auto manufacturing, and a sudden cost hike will likely lead to price increases or reduced production.”
Some automakers are reportedly exploring whether existing exemptions under USMCA rules of origin and electric vehicle incentives might still apply. However, confusion remains about how the new tariffs will be applied, which vehicles qualify for lower rates, and whether the move could trigger retaliatory measures from Mexico or Canada.
In Washington, U.S. Trade Representative Robert Lighthizer defended the administration’s position, saying the revised tariffs are intended to “rebalance unfair trade practices and incentivize domestic investment.” He added that talks with Mexico and Canada were ongoing to avoid any long-term breakdown in economic cooperation.
Mexico’s auto industry association has urged both governments to reach a clear, long-term solution that protects integrated supply chains and honors the principles of USMCA. “Stability is critical,” the group said in a statement. “Disruption at this scale will hurt workers and consumers on both sides of the border.”
For now, Mexico appears to have avoided the worst-case scenario of a full 25% tariff across all vehicle exports. But with tensions still high and policy details in flux, businesses and workers in both countries are bracing for further uncertainty.
Minister Ebrard concluded his remarks by calling for “calm and coordination,” while urging the Trump administration to recognize the shared economic interests that bind the North American auto industry. “We believe in cooperation—not confrontation,” he said. “This is not just about cars. It’s about jobs, trust, and the future of our region.”
Source: Reuters
