Mexican auto parts industry production falls due to Trump's tariffs

From January to May of this year, the value of auto parts production stood at $48.445 billion, a decrease of 8.6% compared to the same period last year, according to the National Auto Parts Industry ( INA ) , which links these impacts to the increase in tariffs in the United States.

Gabriel Padilla, director general of INA, explained that this result is due to the performance of vehicle production and sales in the neighboring country. "And in June, auto parts production is expected to contract due to the performance of the US market, driven by lower car sales."

The industry expects the value of auto parts production to close the year with a 9% drop compared to the previous year.

In addition to auto production and sales in the United States, the imposition of tariffs affected the manufacturing of automotive components in Mexico. From January to May, the auto parts most affected by the reduced production due to the tariffs were those with a high content of steel, aluminum, and copper.

Among the most affected parts are stamped parts, suspension components, air conditioning parts, hinges, and brackets , Padilla explained.

The impact varies for each company, depending on the degree of integration, composition, or proportion of aluminum or steel. These metals are not present in the same quantities in a suspension or transmission as in a seat belt, and the tariff applies only to the proportional portion containing that material.

"The administration has struggled to determine the tariff, which is payable in the United States and represents immediate pressure for importers. Whether they absorb the cost or pass it on to the end consumer depends on each case."

Following Trump's adjustments of 25% to 50% on steel and aluminum, Gabriela Siller , director of Economic and Financial Analysis at Banco Base, stated that this will impact lower growth in the Mexican economy and could lead to a drop in vehicle and auto parts exports . This is becoming evident.

Mireya Pasillas, a professor at ITESO, warned that the tax increase in the United States will be negative for several industries where Jalisco plays a significant role. The risks: less investment and employment.

CT