Published Date: 30.04.2025 14:08 / Politics

Trump Eases Auto Tariffs, Mexico Responds

Trump Eases Auto Tariffs, Mexico Responds

Mexican President Claudia Sheinbaum praised United States President Donald Trump's decision to ease auto tariffs, calling it 'a step forward compared to the tariffs initially imposed.' Speaking on Wednesday, Sheinbaum emphasized that the previous system had unfairly charged exporters twice—once for the vehicle and again for raw materials like steel and aluminum. She noted that these issues were corrected through Trump's recent executive orders.

Sheinbaum welcomed the U.S. recognition of auto parts manufactured across North America as eligible for tariff relief. She viewed this policy shift as a sign of respect for the USMCA (United States–Mexico–Canada Agreement) trade deal, which governs regional economic cooperation. The development was seen as a positive step toward fairer trade practices within the continent.

Sheinbaum also highlighted that two key elements of the agreement remain under active review. Among them is a proposed reimbursement mechanism for automakers to be implemented over a two-year period. She stated that these discussions are ongoing and that both U.S. and Mexican trade teams are in continued dialogue to finalize remaining concerns.

Her remarks followed President Trump’s executive orders announced on Tuesday, which temporarily relaxed the 25% auto tariffs. The White House characterized the measure as short-term relief aimed at supporting the North American auto industry during a transitional phase.

The easing of tariffs is expected to alleviate immediate financial pressure on regional manufacturers, while also reaffirming bilateral cooperation between the U.S. and Mexico under the framework of the USMCA. The continued engagement between both countries’ trade representatives underscores the importance of shared economic stability and long-term policy alignment.