The Mexican government is urging the U.S. to reduce tariffs on North American automobiles amid discussions to rework the U.S.-Mexico-Canada Agreement. This counterproposal follows the Trump administration’s push to require more American-made parts in vehicles. Currently, a 25% tariff is applied to non-U.S. content in cars from Canada and Mexico. Mexico’s recent offer would expand the portion of a vehicle that could be tariff‑free and lower the top‑line tariff rate for North American cars.

The proposal focuses on applying levies to only a small part of a car’s value, potentially lowering final tariffs for many vehicles. By easing restrictions on imported components, Mexico aims to make its automotive exports more competitive.

The U.S. has been resistant, citing domestic industry protection. However, both sides recognize the need for a balanced approach that supports North American manufacturing while maintaining fair trade practices.

If accepted, the change could streamline cross‑border supply chains and reduce costs for consumers, fostering closer economic ties between the three nations.