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Is integration breaking down? The impact of tariffs on the automotive sector

New tariffs pose risks to North America's competitiveness and economic stability, warn leading industry associations.

T21 Media by T21 Media
4 March, 2025
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The automotive sector in Mexico faces a critical challenge following the entry into force of the 25% tariffs imposed by the United States on products from Mexico and Canada , according to statements by various chambers and associations in the sector.

Rogelio Arzate, executive president of the National Association of Bus, Truck and Tractor Producers (ANPACT) , is clear in pointing out that this measure directly harms the productive sectors of both countries , especially the heavy vehicle industry.

The company stressed in a press release that the industry’s supply chain is highly interdependent between nations, with components repeatedly crossing borders , amplifying the effects of tariffs.

“The value chain of the heavy vehicle automotive industry between Mexico and the United States was established decades ago; since the signing of the first free trade agreement, trade between the industries of both nations has been strengthened to date,” said Arzate.

He explained that if the imposition of tariffs continues,  it will affect manufacturers, the productive sector and consumers in both countries.

The ANPACT president also stressed the importance of continuing dialogue between nations to avoid measures that harm regional competitiveness and economic growth.

He said that the trade relationship between Mexico and the United States must be maintained under the principles of cooperation and mutual respect, guaranteeing the continuity of productive integration that has been key to the growth and development of the automotive sector in North America.

Arzate explained that ANPACT is confident that the actions led by President Claudia Sheinbaum, Secretary of the Economy, Marcelo Ebrard, and Foreign Minister Juan Ramón de la Fuente will allow for the immediate resumption of constructive dialogue to find joint solutions between Mexico and the United States.

Trump’s tariffs are not stopping!

The news that impacted the automotive sector on March 4 regarding the application of “Trump’s tariffs” continues to generate debate.

In a joint press release, various organizations such as the Mexican Association of the Automotive Industry (AMIA) , the National Auto Parts Industry (INA) , and the Mexican Association of Automotive Distributors (AMDA) and ANPACT, also expressed their concern about the repercussions of these tariffs.

These associations pointed out that the measures adopted by the United States not only affect the competitiveness of the region , but can also generate inflation and job losses, within the framework of the International Emergency Economic Powers Act (IEEPA).

The statement noted that, according to estimates by the Peterson Institute for International Economics , based in Washington DC, the US economy could shrink by 0.5% by 2027 as a result of the tariffs.

Inflation could also rise by up to four percentage points in 2025 , making essential goods more expensive and affecting families and businesses in the region.

Together, sector organizations advocated for cooperation and understanding between the governments of Mexico, the United States and Canada to maintain economic stability and competitiveness.

The associations involved continue to work actively with authorities and partners to seek solutions that promote integration and joint development in the region.

The associations also reaffirmed that the Treaty between Mexico, the United States and Canada remains a fundamental tool for ensuring the competitiveness and growth of the North American region.

Comment and follow us on X:@GrupoT21

Tags: AMDAAMIAAnpactAUTOMOTIVE SECTORCanadáDUTYINAMéxicoROGELIO ARZATEUSA

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índice de Confianza del Transporte y Logística – Cuarto trimestre 2023 10 destinos de exportación de vehículos pesados 2023 Descubre el Top 10 de destinos de exportación de vehículos pesados en México en 2023 La venta de vehículos pesados rompe récord en 2023 5 marcas de camiones más vendidas