Welcome listeners to Mexico Tariff News and Tracker, your essential update for everything tariffs and trade between the U.S., President Trump, and Mexico, recorded Friday, November 7, 2025.

This year, President Trump’s second term marked a profound shift in tariff policy across the U.S., with some of the biggest waves hitting America’s trade ties with Mexico. From January through April, the average U.S. tariff rate soared from 2.5% to a staggering 27%, the highest in over a century, before easing slightly to an estimated 17.9% by September. The Trump administration’s push for “reciprocal tariffs” culminated in a universal 10% tariff on nearly all U.S. imports starting April 5. Mexico, as America’s second-largest supplier, found itself in the crosshairs of this policy shift.

For Mexico, the most dramatic impact came in the auto sector, which has long been an anchor of trilateral North American trade. In January, Trump initially targeted Canada and Mexico with a sweeping 25% tariff on imported cars, citing national security. Though the U.S. exempted vehicles compliant with the United States-Mexico-Canada Agreement—or USMCA—for a brief period, by April, all imported cars from Mexico fell under the new 25% rate. The move rattled the auto supply chain, with top executives from Ford, GM, and Stellantis warning that these tariffs could devastate the industry, raising car prices by thousands of dollars and threatening jobs on both sides of the border. After heavy lobbying, Trump introduced carve-outs and temporary rebates for some U.S. automakers, but many industry experts argue the cost increases have been felt widely, especially since U.S. car plants are tightly linked with Mexican suppliers. According to Politico, only about half of Mexican exports met USMCA compliance immediately, but the expectation is that nearly all major exporters would adapt quickly.

Turning to recent headlines, in retaliation for the new U.S. tariffs, Mexico prepared its countermeasures, most notably after Trump’s March 4 rollout of the auto tariffs. Canada followed suit, and there were widespread concerns about an escalating North American trade war. The Wall Street Journal has flagged the potential for these measures to profoundly reshape relationships that once relied on decades of expanding free trade. Trade consultant Jorge Molina and other experts are noting that Mexican industry has managed to weather these shocks thanks to rapid adaptation and a competitive edge in manufacturing.

Despite tariff tensions, Mexico’s trade performance in 2025 has been surprisingly resilient. Mexico posted a trade surplus of $1.4 billion from January to July, a major turnaround from last year’s deficit, and exports to the United States—especially manufactured goods—continued to rise. Manufacturing now makes up over 90% of Mexican exports, with 84% of non-oil shipments destined for U.S. markets. While tariffs on products like steel, aluminum, and copper have hit certain sectors particularly hard, Mexico’s role as a keystone in U.S. supply chains—especially in automotive and electronics—remains strong. Data from INEGI shows that customs revenue hit record levels this year, reflecting the surge in both imports and exports.

Listeners should also note that a Supreme Court case on Trump’s tariff powers is front and center this week, with a ruling anticipated that could alter the landscape again. Trump has vowed to keep tariffs operational while the government appeals, but there’s considerable uncertainty until the ruling arrives.

That’s all the news for this edition of Mexico Tariff News and Tracker. Thank you for tuning in and don’t forget to subscribe. This has been a quiet please production, for more check out quiet please dot ai.

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