Mexico is pressing the U.S. to lower tariffs on North American autos amid talks to rework the US‑Mexico‑Canada Agreement. The move is a counterproposal to the Trump administration’s push for more U‑made parts in vehicles. Currently, the U.S. imposes a 25% tariff on non‑U.S. content in cars from Canada and Mexico. The Mexican proposal, made in recent weeks, seeks to expand the tariff‑free content allowed and lower the top‑line tariff rate for North American cars.

The proposal is part of broader negotiations on trade terms and reflects Mexico’s desire to protect its automotive industry while maintaining competitive pricing for consumers. It also signals a shift from the previous administration’s stance on manufacturing localization.

If accepted, the changes could ease production costs for U.S. automakers reliant on Mexican supply chains and potentially lower prices for shoppers. Mexico’s leadership in this effort underscores its strategic importance in the North American auto market.

Trade experts note that any tariff reduction would likely accelerate cross‑border vehicle production and strengthen economic ties among the three countries.