Mexico Tariff News and Tracker

US Imposes Steep 25% Tariffs on Mexican Medium and Heavy-Duty Vehicles Under Trade Expansion Act


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Welcome listeners to Mexico Tariff News and Tracker, your essential update on the latest trade moves between the United States and Mexico. As of today, November 5, 2025, the trade landscape is shifting, with Washington taking direct action that will be felt across both borders.

The United States has announced a significant new round of tariffs on medium- and heavy-duty vehicles, their parts, and buses—a sector with deep ties to Mexico’s manufacturing complex. According to Taxmann, these duties, imposed under Section 232 of the Trade Expansion Act of 1962, went into effect as of November 1, 2025. Medium- and heavy-duty vehicles and parts imported from Mexico now face a 25% ad valorem tariff, while buses are hit with a 10% duty. The move is clearly targeted at protecting U.S. industry, but the ripple effects for Mexico’s auto sector—a pillar of its export economy—could be substantial.

There’s a wrinkle for the North American supply chain: vehicles and parts that qualify under the United States-Mexico-Canada Agreement may be treated differently. As stated by Taxmann, importers can submit documentation showing U.S. content, and the 25% tariff may then apply only to the value not originating in the U.S. However, full knock-down kits—vehicles shipped in parts for assembly—remain fully subject to the new tariff. This creates a complex incentive structure for automakers, who must now weigh the benefits of deeper North American integration against the cost of higher tariffs on Mexican-made components.

This latest tariff action comes amid ongoing discussions about former President Donald Trump’s influence on U.S. trade policy. While the current administration is behind these latest measures, Trump-era trade tools remain very much in play. The Supreme Court has recently reaffirmed the president’s authority to impose sector-specific tariffs, including under statutes that Trump used to levy duties on steel, aluminum, and, at times, Mexican goods. ABC News highlights that Trump still retains the power to impose tariffs of up to 15% for up to 150 days under the Trade Act of 1974, adding another layer of unpredictability for businesses operating across the Rio Grande.

Listeners should note that tariffs are an increasingly significant part of U.S. fiscal policy. The Hamilton Project points out that the U.S. is now collecting more than 1% of GDP in tariff revenue, a figure over five times higher than a decade ago. For Mexico, the stakes are clear: any disruption to its auto exports could have cascading effects on jobs, investment, and economic growth.

Finally, with political winds shifting and the specter of more aggressive trade measures never far away, companies with cross-border operations must stay vigilant. Tracking these changes is no longer optional—it’s essential for anyone with a stake in U.S.-Mexico trade.

Thank you so much for tuning in to Mexico Tariff News and Tracker. Be sure to subscribe so you never miss an update on the trade policies shaping our economic future. This has been a quiet please production, for more check out quiet please dot ai.

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Mexico Tariff News and TrackerBy Inception Point Ai