Mexico working for preferential treatment in face of US auto tariffs

MEXICO CITY (Reuters) - Mexico is working to carve out an exemption for its critical autos industry after Washington announced tariffs on imported vehicles, the economy minister said on Thursday.

U.S. President Donald Trump on Wednesday announced 25% tariffs on auto imports, escalating his global trade war and threatening the USMCA free trade agreement Mexico and Canada have with the United States.

Speaking from Washington, where he has been meeting with top Trump administration officials, Mexican Economy Minister Marcelo Ebrard said negotiations were ongoing to ensure preferential treatment for Mexico.

"If they are going to change the system, if we are going to a system of such high tariffs, what we have to seek is a preferential treatment for Mexico in a way that we have conditions that protect our jobs and economic activity in Mexico," Ebrard said in a video that was played at President Claudia Sheinbaum's morning press conference.

Sheinbaum added that she also planned to meet with automakers including Ford, General Motors and Stellantis, to better understand how their operations are being affected.

"We'll meet with the automakers, not only those representing the sector," she said. "To understand, first of all, how it affects them, and how we can promote the internal market."

Trump's plan announced Wednesday partially exempts tariffs for vehicles and parts that comply with the USMCA's rules of origin, but only for the value of their U.S.-produced content.

USMCA-compliant auto parts will stay duty-free until U.S. agencies can determine a process to apply tariffs to their non-U.S.-produced content, according to the White House.

Mexico exported 2.5 million vehicles to the United States in 2024, according to S&P Global Mobility.

(Reporting by Ana Isabel Martinez, Brendan O'Boyle and Stefanie Eschenbacher; Writing by Brendan O'Boyle; editing by Stephen Eisenhammer)