La Jornada: Auto parts industry begins to recover from Trump tariffs

The auto parts industry in Mexico began a recovery phase after the impact caused by the tariffs imposed at the beginning of Donald Trump’s second administration, with signs of growth since the second half of last year and a change in the dynamics of supply chains in North America, sector representatives stated.

In a conference, the president of the National Auto Parts Industry (INA), Francisco González, explained that the sector faced a period of adjustment due to the uncertainty generated by the new commercial conditions, but managed to adapt gradually.

“We had a health problem last year, when the tariffs began to come in, but little by little the situation improved and starting in July and August we grew again,” he indicated.

Although the annual balance is negative, the leader specified that the trend changed in the second half of the year, when a sustained recovery began to be observed, in parallel with the adaptation to the rules of the Treaty between Mexico, the United States and Canada (T-MEC).

The commercial environment, González stated, opened opportunities to strengthen regional production. The tariffs that Mexico has applied to imports from countries with which it does not have trade agreements have encouraged the integration of the industry in North America, which allows progress in compliance with the rules of origin of the T-MEC.

René Mendoza Acosta, president of the Industry Supplier Chain in Mexico, stated that the sector is being reconfigured due to relocation (nearshoring) and the review of the T-MEC. He identified two main forces: the strengthening of regional content and the increase in the cost of imports from Asia.

He highlighted that this process is already reflected in the decisions of shipowners and suppliers, as well as in a more intense search for inputs in the country. Between January and March 2026, said diversification grew 18 percent, with an estimated turnover of 8,867 million dollars. “The market is not decreasing; it is changing towards suppliers in Mexico,” he said.

Looking ahead to the review of the treaty, González warned that competition is no longer limited to traditional auto parts, but to components with greater added value such as batteries, electronics and software. “If we quickly increase regional content in high-value components, we will consolidate our leadership in the new mobility,” he noted.