Tuesday, 02 January 2024 12:17 GMT

Trump Mulls Potential Tariff Relief on Mexico-Made Heavy Trucks


(MENAFN) The United States is weighing a potential tariff relief for Mexico on the newly imposed 25% duty targeting imported medium- and heavy-duty trucks, Mexican Economy Minister Marcelo Ebrard announced on Friday.

According to Ebrard, the proposed exemption would mirror the framework already in place for light vehicles — a mechanism that has favored Mexico due to the extensive integration of auto parts manufacturing between the two nations.

"The U.S. government has told us there will be a discount process, and that will greatly benefit the companies operating in Mexico," Ebrard told reporters.

Earlier this week, U.S. President Donald Trump unveiled a 25% tariff on all foreign-made medium and heavy trucks, effective November 1. This follows a similar levy on imported light vehicles, implemented in April through a presidential executive order.

While vehicles assembled in Mexico and Canada are formally covered under the tariff, manufacturers can subtract the value of parts produced in the U.S. — provided they comply with the North American Free Trade Agreement (NAFTA) content rules.

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