Mexican Auto Exports Plunge as US Tariffs Weigh on Shipments

Mexico's car exports fell 17.9% year over year to 258,137 units in October 2026, marking the steepest annual decline since October 2021, as US tariffs continued to weigh on the country's automotive industry. The decline comes amid ongoing US-Mexico trade negotiations, with Mexican vehicles still facing 25% tariffs, although compliance with North American sourcing rules can reduce the effective rate to 10%-12%. Despite progress in bilateral talks, no agreement has been reached on key issues, particularly relief from US Section 232 tariffs on steel, aluminum and automobiles. Among automakers, exports fell most sharply for Mercedes-Benz (-100%), General Motors (-47.2%), Mazda (-32.5%) and BMW (-23.1%), while shipments from Ford, Stellantis and Volkswagen also recorded notable declines.

Mexico’s car exports fell 11.8% year over year to 277,369 units in September 2026, following a 1.3% increase in August. Export volumes declined most for Mercedes-Benz (100%), followed by Nissan (33%) and Stellantis (20.4%). Mexico’s auto sector remains affected by uncertainty over US trade policy, as most vehicle shipments are destined for the US. The Trump administration has imposed tariffs on multiple trading partners, while the US did not agree to renew the USMCA in its current form during the agreement’s 2026 joint review. The pact remains in force pending resolution of outstanding issues or termination, while the US and Mexico continue bilateral negotiations, including on automobiles. Auto shipments also fell for Ford Motor (-13.2%), Honda (-17.7%), Acura (-9.9%), Audi (-18.6%), Toyota (-6.2%) and Volkswagen (-3.5%).

Mexico’s car exports rose 1.3% year-on-year to 300,475 units in August 2026, following a 9.7% decline in July. Export volumes increased most for BMW Group (31.4%), followed by General Motors (16.8%) and Stellantis (15%). Still, Mexico’s auto sector remains affected by uncertainty over US trade policies, as 76.3% of auto shipments are destined for the US. US President Trump in his second term imposed a series of tariffs on multiple countries, including Mexico. The Trump administration also decided not to renew the USMCA, the agreement will remain in force for another decade unless a member withdraws, but with annual reviews that could lead to significant changes. The US and Mexico also continue bilateral trade negotiations. Auto shipments fell most for Mercedes-Benz (-95.3%), Ford Motor (-41.3%), and Mazda (-25.2%).