Mexican President Claudia Sheinbaum on Wednesday welcomed her US counterpart Donald Trump’s softening of tariffs on automakers, saying it was a step forward in efforts to avert a trade war.
“It’s progress,” Sheinbaum, whose country is considered one of the most exposed to Trump’s import duties, said at her morning news conference.
The new rules would give Mexico “an additional competitive advantage” due to its free trade agreement with the United States and Canada, she said.
Trump signed an executive order on Tuesday limiting the impact of overlapping tariffs on vehicles, steel and aluminum.
Sheinbaum said another change meant that vehicle tariffs would be reduced if some of the parts were produced in Mexico or Canada, not just the United States.
“This is very important because it once again recognizes the value of the United States-Mexico-Canada trade agreement,” she said.
Manufacturers say automotive components cross the US-Mexico border multiple times during the assembly process.
In theory, Mexico should be protected against US tariffs by the North American free trade agreement that was renegotiated during Trump’s first term in office.
While Trump left Mexico off the list of nations facing his steep “reciprocal tariffs,” its carmakers as well as steel and aluminum exporters still face duties.
Mexico replaced China in 2023 as the largest trading partner with the United States, which buys more than 80 percent of its exports.
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