WSJ reported, citing people familiar with talks, that Mexico is pressing the US
to lower tariffs on North American autos as part of discussions to revise the
US‑Mexico‑Canada Agreement. The demand responds to the Trump administration’s
prior push for more US‑made auto content; the administration currently applies a
25% tariff on the portion of a vehicle’s value attributable to parts not made in
the US for autos from Canada and Mexico. Mexico’s recent proposal would broaden
the range of tariff‑exempt parts and cut the peak North American auto tariff
from 25% to a lower rate, possibly 5%–10%. Under the proposal the US would levy
duties only on the value of parts produced outside North America, effectively
exempting parts made in Mexico and Canada.
