Mexico's Auto Parts Industry: U.S. Tariff Threatens the Operation of the North American Automotive Supply Chain

On June 6th local time, the Mexican National Auto Parts Industry Association issued a statement saying that the decision by the United States to raise import tariffs on steel and aluminum to 50% may jeopardize the continuous operation of the North American automotive supply chain. The association expressed concern over the U.S. government's decision to increase the import tariffs on steel and aluminum derivatives produced in Mexico from 25% to 50%. According to the association's assessment, this move will affect the competitiveness of Mexico's auto parts industry, disrupt the stability of North America's highly integrated supply chain, and impact automotive production across the region. The association explained that the U.S. government's new tariff policy particularly hits Mexican auto parts manufacturers that rely on steel and aluminum as key raw materials, and the cost increases resulting from this policy will immediately affect vehicle delivery cycles, threatening the operational continuity of the entire North American automotive supply chain. The association emphasized that auto parts that meet the origin requirements of the United States-Mexico-Canada Agreement (USMCA) should be exempt from this measure