US-Tariffs Hit Automotive Suppliers: Why Staying Competitive Means Producing in Mexico

Since Donald Trump’s return to the presidency, U.S. trade policy has taken a sharp protectionist turn—particularly impacting the automotive sector. New tariffs of up to 25% are forcing global car manufacturers to rethink their supply chains.

For European and Asian OEMs and Tier-1 suppliers, producing in Mexico under the USMCA framework offers a clear path to stay competitive and avoid costly penalties.

This article explores how the trade shift is creating risks—but also major opportunities—for companies willing to localize operations in Mexico.