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Mexico to Raise Automobile Tariffs, Too

The Mexican government has announced its intention to raise tariff rates on some imports (1,463 items in total, including automobiles/related parts and steel) from non-FTA countries (China, South Korea, ASEAN, Turkey, etc.) in September 2025.

The increase will be within the range of concessionary tariff rates allowed by the WTO. In the case of automobiles, the current rate for finished automobiles will be raised from 15-20% to 50%, while the current rate for automobile parts will be raised from 0-5% to 10-50%.
However, Japan, the EU, and the U.K. are FTA partners and are not subject to the tariff rate increases.

However, Mexico has a system called “Special Quota for Producers” that allows tariff-free imports of finished vehicles depending on the number of locally produced vehicles.
This system also applies to imports from non-FTA countries, and the importance of the tariff-free quota is expected to increase with the recent tariff rate hike.

On the other hand, for automotive parts, it is essential to consider the use of the Production Promotion Program by Industry Sector (PROSEC, e.g., 0-3%) and its complementary system, Regula Octava (parts and materials that are difficult to procure domestically).