Mexico Waives Auto-Parts Tariffs for Existing Automakers

Mexico will suspend its 10% import tariff on specified auto parts and components for five years, starting Oct. 14, 2026, to reduce costs and encourage vehicle assembly and investment in the country. The relief covers parts used in assembly, including semi- and completely knocked-down kits, but is limited to automakers with authorized bonded-warehouse status that meet Economy Ministry rules. Officials have stressed that the measure does not create a duty-free route for importing finished vehicles or broadly open assembly to companies without the required manufacturing authorization; they say its purpose is to strengthen local automotive supply chains. The government says the policy could support new production projects, specialized jobs and technology transfer.