Factory Focus Weekly Insights for Manufacturing in Mexico
It's the blog for manufacturing executives operating in Mexico. Designed as a concise, high-value fact sheet, it delivers critical weekly updates on legislative and regulatory changes that could impact your business.
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Trump's Partial Tariff Exemptions for Carmakers Amid Rising Trade Tensions
U.S. President Donald Trump plans to exempt carmakers from certain tariffs, following industry pressure, according to the Financial Times. The exemptions will apply to car parts, shielding them from new tariffs related to Chinese imports and from existing steel and aluminum duties. However, the 25% tariff on fully imported foreign vehicles will remain, and the same rate will apply to some car parts starting May 3. This partial relief comes amid growing concern within the automotive sector about the impact of Trump’s fluctuating tariff policies, which have disrupted supply chains, raised production costs, and threatened company profits. According to the Center for Automotive Research, Trump’s tariffs could increase automaker expenses by $108 billion in 2025. Companies like Tesla have already adjusted their logistics, suspending shipments of components from China. Ford also paused some exports to China in response to retaliatory tariffs, which have pushed total duties on vehicles as high as 150%. Meanwhile, Trump signaled the 25% tariff on Canadian vehicle imports could be raised further, emphasizing a preference for domestic manufacturing.
In a related development, Mexican President Claudia Sheinbaum disclosed an ongoing dialogue with Trump over steel, aluminum, and auto part tariffs. She argued for zero tariffs under the USMCA, citing that Mexico imports more U.S. steel and aluminum than it exports. While no agreement has been reached, discussions continue at both presidential and ministerial levels. These event could highlight rising trade tensions and their potential impact on North American manufacturing, with broader implications for regional economic cooperation under USMCA.
Source: NEW YORK TIMES
Trump Accuses Main Trading Partners of Continuous Fentanyl Trafficking
Former U.S. President Donald Trump accused China, Mexico, and Canada of continuing to allow fentanyl to enter the U.S., killing thousands. He posted on Truth Social demanding an immediate stop to the trafficking of the synthetic drug, which is made using Chinese precursors. In response, Trump imposed punitive tariffs: 25% on certain Mexican and Canadian goods and 145% on some Chinese imports. While he acknowledged Mexican President Claudia Sheinbaum’s efforts, he deemed them insufficient. Fentanyl seizures at the U.S.-Mexico border rose 40% in March 2025, along with increased attempts to traffic cocaine and methamphetamine.
Source: REFORMA