Business · Trade · 4 hrs ago
Mexico removes 10% tariff on auto parts for eligible assemblers
Mexico has removed a 10% import tariff on parts and components used to assemble cars.
The five-year exemption starts October 14, 2026, and applies to goods in a specified tariff category.
It is limited to companies authorized to assemble and manufacture vehicles under Mexico’s customs law, and they must follow rules set by the Economy Ministry.
The government says the change is meant to attract new vehicle production lines and lower the cost of setting up and running automotive projects in Mexico.
The policy is part of efforts to expand local vehicle manufacturing as companies reconsider where they produce goods and global trade faces restrictions.
Officials expect the measure to support jobs, technology transfer and local supply chains; the exemption can also help companies begin with simpler assembly before developing more complex manufacturing.
Mexico has removed a 10% import tariff on auto parts and components used to assemble vehicles.
The five-year exemption is limited to eligible automotive companies with authorization to assemble and manufacture vehicles under a bonded warehouse scheme.
The measure takes effect on 14 October 2026 and applies to tariff classification 9803.00.01.
The government says the measure aims to attract new production lines, lower costs and strengthen domestic supply chains.
It also seeks to encourage specialized employment and technology transfer.
- Who
- The Mexican government under President Claudia Sheinbaum.
- What
- A five-year exemption from the 10% tariff on eligible imported auto parts and components used for vehicle assembly.
- When
- It takes effect on 14 October 2026 and will last five years.
- Where
- Mexico.
- Why
- To attract new automotive production lines, reduce project costs and strengthen domestic supply chains.
This story does not have two clearly opposing sides.
The decree removing the tariff was published in Mexico’s Official Gazette.
The five-year exemption takes effect.
- Tariff removed
- 10%
- Duration
- Five years
- Tariff classification
- 9803.00.01
- Effective date
- 14 October 2026
- Eligibility
- Companies authorized to assemble and manufacture vehicles under a bonded warehouse scheme
2 sources
What people are saying
The exemption from the tariff applicable to imports classified under tariff heading 9803.00.01 will reduce the establishment and operating costs of new automotive projects, encouraging the installation of production lines in Mexico (…) and strengthening domestic supply chains, in line with the objectives set out in Plan Mexico
In the current context of the reconfiguration of global supply chains and production relocation, it is necessary to strengthen Mexico’s competitiveness as an investment destination for the automotive industry, particularly for projects that envisage the gradual establishment of production operations through Semi Knocked Down (SKD) or Completely Knocked Down (CKD) vehicle assembly schemes