MEXICO · TRADE
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- —The nation Mexico is a significant car-making nation that builds automobiles for the US market below the USMCA commerce pact with america and Canada.
- —Why it issues The zero tariff on automotive meeting elements is open solely to the 11 light-vehicle makers that have already got crops in Mexico, to not importers of completed automobiles.
- —Why now The Financial system Ministry issued its clarification on Friday 16 October, two days after the decree took impact, as a result of the decree had been learn in numerous methods.
- —What occurred The ministry mentioned solely plant-owning carmakers with a bonded-warehouse allow and its prior approval can usher in elements on the zero charge.
- —The numbers The tariff on the customs line was 10% and is zero for 5 years from 14 October. In 2025 simply 0.01% of Mexico’s automotive imports used that line.
- —What it means for you A carmaker with no Mexican plant can not use the waiver, and every qualifying import wants prior permission and vehicle-by-vehicle monitoring.
- —Nonetheless open The ministry has not named the 11 makers or revealed the rules with minimal output and caps on elements imports.
- —Energy Index Mexico ranks 2nd of 14 in The Rio Instances Latin America Energy Index, with 71.4 factors (October 2026 version).
Mexico’s Financial system Ministry mentioned on Friday 16 October that solely 11 carmakers with Mexican crops can use the automotive elements tariff waiver. For US readers, the restrict retains the profit with makers that already construct automobiles for North America, not with importers of completed automobiles.
The ministry spoke after the decree of Tuesday 13 October drew differing readings. The decree took impact on Wednesday 14 October and runs for 5 years.
What the Financial system Ministry Stated on 16 October
The ministry mentioned the decree doesn’t ease elements imports for firms with out productive amenities in Mexico. It added that the decree doesn’t ease entry for automobiles from nations with no commerce cope with Mexico.
In its assertion, titled “Decree Exemption of Tariff for Importing Meeting Materials” in our translation, it mentioned solely companies with crops in Mexico qualify. It counted these companies at 11 light-vehicle makers and didn’t identify them.
The ministry listed three goals drawn from the decree itself. They’re defending jobs, making Mexico extra aggressive for funding, and transferring manufacturing traces from overseas to carmakers already working within the nation.
Financial system Secretary Marcelo Ebrard, the cupboard minister who runs commerce coverage, co-signed the decree with President Claudia Sheinbaum. Finance Secretary Édgar Amador Zamora additionally signed it on Friday 9 October.
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How the Automotive Elements Tariff Waiver Works
The decree adjustments one customs line, 9803.00.01, which covers elements and parts for assembling automobiles. The road carried a ten% import tariff till 13 October and now carries none for 5 years.
Importers should maintain a bonded-warehouse authorisation for assembling and making automobiles below Mexico’s Customs Regulation. They have to additionally comply with pointers that the ministry has mentioned it’ll concern.
Each import will want prior permission from the ministry, which says this lets it examine that companies meet the foundations. The tax company SAT and the nationwide customs company ANAM will run controls.
Companies should report the car identification numbers of automobiles constructed with imported elements and provide knowledge that traces these elements. The rules will even set minimal output of full automobiles in Mexico and caps on elements imports as a share of that output.
Solely a excessive stage of full-vehicle manufacturing will entitle a maker to import elements for equipment meeting, the ministry mentioned. Package meeting means semi knocked down (SKD) or fully knocked down (CKD) automobiles, which arrive as partly or totally dismantled units.
Why Mexico Desires Meeting Traces at Dwelling
The ministry says the purpose is to maneuver from meeting to full automotive manufacturing, with native content material rising step-by-step. It additionally needs fewer imports of completed automobiles from nations with which Mexico has no commerce treaty.
For instance, it cited Sheinbaum’s announcement in Might that Basic Motors, the US carmaker, would transfer two manufacturing traces from China to Mexico. These traces will begin with meeting and add native content material steadily, the ministry mentioned.
The customs line has seen little use to date. In 2025, solely 0.01% of Mexico’s complete automotive imports entered below that code, the ministry mentioned.
The decree’s textual content and timing are set out in Mexico Scraps 10% Tariff on Automotive Elements. The stress from Chinese language manufacturers on Nissan, GM and Volkswagen is roofed in Chinese language automotive manufacturers squeeze Nissan, GM and Volkswagen in Mexico.
How It Suits the 50% Tariff on Vehicles From Non-Treaty International locations
Since 1 January 2026, Mexico has charged as much as 50% on many passenger automobiles from nations with no commerce deal, China amongst them. A separate decree revealed on 29 December 2025 set that charge, and this one doesn’t change it.
The ministry says the waiver is a narrower software for crops already working in Mexico. It stresses that the measure goals to strengthen the native provide chain.
The broader commerce backdrop is defined in Mexico Geopolitics 2026, US Tariffs, USMCA and China. The fee facet for North American carmakers is in Auto Tariffs Hit North America Provide Chain.
What It Means for You
If you happen to comply with US carmakers with Mexican crops, the waiver can decrease the price of new meeting initiatives, because the decree itself says. Every challenge nonetheless has to clear the allow, monitoring and output checks.
If you happen to observe Chinese language manufacturers’ plans for Mexico, the assertion offers no opening to companies with no plant within the nation. It additionally leaves the 50% tariff on automobiles from non-treaty nations in place.
If you’re shopping for a automotive in Mexico, nothing within the assertion lowers the value of imported fashions. Readers who stay within the capital can discover native context in our Mexico Metropolis expat metropolis information and in Who Runs Mexico’s Financial system, the Key Gamers in 2026.
What Is Not Recognized
The ministry has not named the 11 makers or mentioned which ones have utilized for permits. It has not but revealed the rules, so the minimal output and the cap on elements imports are unknown.
The assertion offers no estimate of what number of automobiles the waiver will cowl or what it’ll value in misplaced tariff income. It additionally doesn’t say when the primary permits will likely be granted.
Not one of the sources reviewed exhibits a response from Washington. It isn’t identified whether or not the waiver will characteristic within the USMCA evaluate talks.
Continuously Requested Questions
What did Mexico’s Financial system Ministry say on 16 October?
It mentioned solely firms with crops in Mexico, 11 light-vehicle makers in all, can import automotive meeting elements on the zero tariff. It mentioned the decree doesn’t ease elements imports by companies with out native crops or entry for automobiles from nations with no commerce deal.
What number of carmakers can use the zero tariff?
The ministry places the quantity at 11 light-vehicle makers with productive amenities in Mexico. It has not named them.
What’s customs line 9803.00.01?
It’s the tariff line for elements and parts used to assemble automobiles by makers with a bonded-warehouse allow. It carried a ten% import tariff till 13 October.
Does the waiver minimize the 50% tariff on automobiles from non-treaty nations?
No, that tariff has utilized since 1 January 2026 and the decree doesn’t change it. The ministry says the waiver won’t ease entry for such automobiles.
When does the waiver begin and finish?
It took impact on Wednesday 14 October 2026, the day after publication within the official gazette. It runs for 5 years from that date.
Sources: Secretaría de Economía, assertion of 16 October 2026; Diario Oficial de la Federación, decree revealed 13 October 2026; Contralínea, 16 October 2026; El Financiero, 13 October 2026; Diario Oficial de la Federación, tariff decree revealed 29 December 2025; El CEO, December 2025.
Editorial accountability: Matthias Camenzind, Editor-in-Chief · Editorial requirements · Report an error
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