The imposition of 25% tariffs on steel and aluminum imports by the United States to Mexico could generate a “significant impact” on the production costs of heavy vehicles and, consequently, affect the competitiveness of Mexican companies in the international market, according to Rogelio Arzate, executive president of the National Association of Bus, Truck and Tractor Producers (ANPACT) .
During the presentation of the ANPACT Heavy Vehicle Automotive Industry Balance Sheet , Arzate commented that the heavy vehicle industry, production and supply chain are “closely and strongly” integrated with the United States, so the imposition of these tariffs would affect production.
As a result, he explained that vehicle parts, including steel and aluminum, cross the border between Mexico, the United States and Canada up to seven times before the vehicle is assembled and finished in Mexico, so he believes that applying tariffs is not a solution .
For the sector, the concern is not only about the tariffs on steel and aluminum, which will come into effect on March 12, but also about those on imports of Mexican products , which are currently paused (with a tentative application date of March 4).
Regarding the latter, Arzate referred to a transport association which indicated that there would be an increase in the prices of heavy vehicles of around 35 thousand dollars if the 25% tariffs on imports from Mexico were carried out .
However, he said that ANPACT is still studying what the economic impact of tariffs on steel and aluminum could be . He said that the industry is waiting for the next decisions that could define the final impact of the tariffs.
Regarding the position of the Mexican Government , Arzate considered that until now the strategy has been correct .
“The Mexican government has done very well. So far, it has not taken any action in retaliation, which we believe is appropriate because they are working on what was agreed with the American government,” said Arzate.
The CEO of ANPACT also highlighted the importance of defending free trade within the framework of the United States-Mexico-Canada Agreement (T-MEC) and expressed his rejection of the United States’ protectionist measures.
“Avoiding these tariffs would be important,” he said, adding that “imposing tariffs on Mexican exports or imports from the United States is illogical and makes no sense,” Arzate said.
Finally, he assured that ANPACT will continue to maintain constant dialogue with the authorities and will closely monitor the evolution of the issue.
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