MEXICO · TRADE
Six planned factory expansions and new plants in the Mexican state of Puebla, one of Mexico’s main car-making regions, are still on hold because of uncertainty over US tariffs. Carlos Sosa Spínola, head of the Puebla branch of Canacintra, a national chamber of manufacturers, said none has been cancelled, in an interview reported on Monday 9 November 2026 that we could not confirm independently.
For US readers, the freeze shows how tariffs on North American trade also hold back the factories that supply US car buyers. The US has charged a 25% tariff on imported vehicles since 3 April 2025 and on key parts from May 2025, with partial relief for goods that qualify under USMCA, the US-Mexico-Canada trade pact.
Key Facts
- Who Canacintra Puebla, the local branch of Mexico’s national chamber of manufacturers, says six industrial projects are frozen.
- What Plant expansions and new factories are on hold; the chamber says none is formally cancelled.
- Jobs One project could create over 1,200 direct jobs, the chamber’s president said; no total for all six.
- Since Reports of paused expansions at Puebla auto-parts suppliers date from at least April 2025.
- Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 70.8 points (November 2026 edition).
What the Business Chamber Said
Sosa Spínola said the main obstacle is the tariff environment, which has forced companies to hold back their plans while trade terms between Mexico and the United States stay unclear. He said most of the projects are in the car industry, which sells heavily into the US market, and the rest are in other industries.
He declined to name the companies, calling the projects strategic for each firm. He said the chamber keeps in contact with the companies and that the projects are postponed, not cancelled.
A Freeze That Began in 2025
A report in April 2025 said at least six auto-parts suppliers in Puebla had paused expansion plans after the US vehicle tariff took effect. In May 2025, Canacintra Puebla said six investments in the state were paused.
Why Puebla Matters to US Readers
Puebla is one of Mexico’s main car-making states, with a large Volkswagen plant and a web of parts suppliers, and its factories depend on sales to the US. Our earlier report on the labour dispute at Volkswagen’s Puebla plant and our Puebla city guide show how exposed the state is.
Sosa Spínola said the uncertainty hurts the US economy as well, because the two countries build cars and parts together. He added that political changes in the United States could alter the terms of trade talks and eventually ease the tariff pressure.
What It Means for You
Investors in car and parts makers with Mexican plants should expect expansion decisions to stay on hold until tariff terms are clearer. Our report on the 2026 review of the USMCA trade pact explains the next steps.
For workers in Puebla, the freeze means fewer new jobs than planned. The chamber’s own count of six is the only figure given, and more is in our Mexico coverage.
What Is Not Known
The companies, the size of the planned investments and the total number of jobs at stake have not been disclosed. It is also unclear which tariff changes, if any, would bring the projects back.
Frequently Asked Questions
How Many Puebla Investments Are on Hold?
Canacintra Puebla says six projects to expand plants or open new ones are frozen. None has been formally cancelled.
Why Are the Projects Stalled?
The chamber blames uncertainty over US tariffs and trade conditions between Mexico and the United States. Companies are postponing decisions until the terms are clearer.
How Many Jobs Are at Stake?
One of the six projects could create more than 1,200 direct jobs. The chamber has not given a total for all six.
Which Companies Are Involved?
The chamber has not named them, saying the projects are strategic for each company. Most are in the car industry.
Sources: Statements by Carlos Sosa Spínola, president of Canacintra Puebla (National Chamber of the Transformation Industry), reported 9 November 2026 and not independently confirmed; Canacintra statements reported in April and May 2025; US tariff proclamations on vehicles and parts of 2025.
In depth
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error