Mexico aims to boost compliant exports to 90% after U.S. tariff reprieve

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Mexico aims to boost compliant exports to 90% after U.S. tariff reprieve

By Kylie Madry

MEXICO CITY (Reuters) -Mexico expects to significantly boost the number of compliant companies exporting to the U.S. under a regional trade pact in coming weeks, Economy Minister Marcelo Ebrard said on Friday, after Washington paused tariffs on ******** shipments entering under the agreement.

Ebrard, speaking in a regular press conference alongside President Claudia Sheinbaum, said currently over half of goods going from Mexico to the U.S. were compliant under the U.S.-Mexico-Canada (USMCA) trade agreement – and subsequently eligible for the tariff reprieve announced on Thursday.

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The minister said he estimated that figure could increase to between 85% and 90% as companies shifted their export practices away from shipping under a so-called “most-favored nation” clause to the USMCA.

But Ebrard acknowledged that a group of companies behind 10% to 12% of exports would have greater difficulty complying, mentioning parts of the auto sector in particular.

Mexico will meet with auto firms in the coming weeks to work on the issue, he said.

While the Detroit Three automakers General Motors, Ford, and Stellantis pushed for USMCA-compliant goods to be exempted from tariffs, and applauded the move, some competitors that do not comply could be on the hook to pay the full 25% tariff.

At issue are the complex rules of origin stipulated by USMCA which require a certain percentage of parts, as well as the steel and aluminum used to make the vehicle, be sourced in the region.

The U.S. imported $181.4 billion in autos and auto parts from Mexico in 2024, representing nearly 10% of Mexico’s economy, according to Goldman Sachs.

The North American auto supply chain is highly integrated through the United States, Canada and Mexico, as parts cross the border in various stages of manufacturing that could expose car companies to multiple tariffs.

STEEL, ALUMINUM TARIFFS ON THE TABLE

******** officials are also set to meet with U.S. trade authorities next week regarding fresh tariffs on steel and aluminum coming into the U.S., Ebrard said.

“Mexico imports more than what the U.S. imports from Mexico,” Ebrard said. “We’re having those discussions, because there’s no justification for having tariffs on aluminum and steel.”

President Donald Trump has said the U.S. needs to reduce trade deficit with other nations, and used the argument to justify tariffs.

(Reporting by Kylie Madry; Additional reporting by Raul Cortes; editing by Stephen Eisenhammer and David Gregorio)

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