📊Executive Summary

As the 2026 review of the USMCA approaches, Mexico's automotive industry faces significant challenges due to stricter trade rules and rising tariffs. Executives at the CIAN automotive conference expressed concerns over the increasing scrutiny of Asian components, which could disrupt supply chains as more parts must originate from North America to qualify for tariff-free trade. The regional content requirement will rise to 70% by 2027, complicating operations as many parts cross borders multiple times. In response to U.S. tariffs on heavy trucks, Mexico plans to raise tariffs on vehicles from China to 50%. Industry leaders stress the need for closer cooperation across North America and the development of local Tier-2 and Tier-3 suppliers to reduce dependence on foreign inputs, particularly in electronics and software. Despite the complex outlook, there is cautious optimism about adapting supply chains and maintaining North America's position in global vehicle production....