Mexico Now Supplies 44% of U.S. Auto Parts. That’s a Record

Nearly half of every auto part entering the United States now comes from Mexico. The country’s National Auto Parts Industry association reported that Mexican-made components captured 43.87% of all U.S. auto parts imports between January and November 2025 — the highest share ever recorded, up from 29.8% in 2007. It happened in a year when Washington was actively trying to rewrite the rules. This is part of The Rio Times’ daily coverage of Mexico affairs and Latin American financial news.

The numbers tell an unusual story. Mexican auto parts exports to the U.S. fell 1.8% to $75.9 billion, but American imports from the rest of the world fell faster — down 3.1% overall to $172.9 billion. Mexico didn’t grow; it simply shrank less than everyone else. Canada, Japan, South Korea, and China all lost ground. In October alone, Mexico hit 46.2% — meaning nearly every other part entering America came from a Mexican factory.

Mexican Auto Sector Faces Trade Uncertainty

Total production reached $110 billion through November, a 2.86% contraction tied to weaker U.S. vehicle output. But the second half showed recovery: November hit $9.9 billion, up 3.24% year-on-year, and October posted the year’s peak at $10.9 billion. The sector generated a $32.9 billion trade surplus, with 87% of exports bound for the United States. Coahuila, Guanajuato, and Nuevo León led production, and electrical components — wiring harnesses, sensors, circuits — accounted for nearly a fifth of output.

The political backdrop makes this fragile. Trump imposed 25% tariffs on autos and auto parts in 2025 alongside 50% duties on steel, aluminum, and copper. About 92% of Mexican auto parts qualify for T-MEC exemptions, but the remaining 8% face an average 27% tariff — and a single piston can cross the border seven times during manufacturing. The T-MEC faces its mandatory review by July 1, and Trump has called the deal “irrelevant,” raising the possibility of withdrawal.

Industry leaders call 2026 a year of “survival mode.” New investment dropped 24.6% in the first half of 2025 as companies paused expansion amid uncertainty. Yet the factories kept running. The integration between Mexican suppliers and American assembly lines is now so deep — roughly 1,400 companies across ten states, components crossing the border multiple times before reaching a showroom — that unwinding it would cost an estimated $50 billion and require 18 new plants. Mexico’s record market share is both a shield and a target.

Related coverage: Brazil’s Morning Call | Mexico Stocks Near All-Time High as Peso Hits 17.15 on CPI

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error