Cars made with us get a better fee ‘discount’, says Ebrahd
Economic Minister Marcello Ebert said on Tuesday that the vehicles assembled in Mexico would face an average of 15% when exported to the United States, which was significantly less than the US’s 25% duty to other foreign cars.
At an event in Mexico, Ebraht said, “This is the greatest benefit compared to other countries exported to the United States.”
“Of course, we want it to zero,” he said.
The business department of the United States came to his comments on the same day Released “Procedures for Submissions” by importers of automobiles It qualified for priority treatment under the USMCA, the North American Free Trade Agreement, which broke the Nafta in 2020.
US President Donald Trump announced at the end of March He will impose a 25% fee of “all unveiled cars in the United States”, but the US content was exempted from duty on vehicles assembled in Mexico, reduced the useful fee on vehicles made in Mexico. The fee came into effect in early April.
The “practices” published by the US Trade Department in the Federal Registry are what importers of vehicles from Mexico and Canada are exempted from paying a fee for US content in those vehicles (see below).
Hebreard: The fee may be up to 50% of the ‘discount’
Ebraht said that vehicles assembled in Mexico are eligible to “discount” at a 25% fee announced by Trump at the end of March.
He said the “discount” is an average of 40%, but may be up to 50% – if a vehicle has a 50% US content.
Killermo Rosals, president of the Mexican Vehicle Distributors Association, said in March, that the vehicle manufactured in Mexico had an average of 40% of the US content. The useful fee of a vehicle assembled in Mexico with 40% of the US content is 15%.
In a statement issued on Tuesday, the US Trade Department said it was creating the assumption of “the approximate amount of American content” in vehicles exported to the United States and exported to the United States.
Therefore, the average fee of vehicles manufactured in Mexico and exported to the United States will be 15%, Ebrard said.
If a car assembled in Mexico has a 50% US content, it will face a 12.5% useful payment rate when it is sent to the United States. A Mexican -made car with only 30% of the US content will face US fees of 17.5%.
Ebraht said the priority given to Mexico was the result of meetings between Mexican officials and US officials, including Business Secretary Howard Lutnik and Business Representative Jameson Grair.
“You can imagine what will happen without … (this treatment),” he said, saying that the US exported more than 2.6 million cars to the US last year.
Hebreard led the Mexican government’s trade negotiations with the United States on occasions to present the Mexican government’s case against auto, steel and aluminum charges.
Mexican Auto Parts complied with USMCA Exempt from 25% duties In early May, the US imposed imports from other countries.
National vehicle parts industrial Reported earlier this month 92% of the Mexican vehicle parts are not subject to 25% of the US fee because almost all products are complied with the current trade rules.
Importers of Mexican vehicles must submit documents to avoid full payment
“Procedures for submission by importers of automobiles qualified for preference fee treatment under USMCA to determine US content“Only 25% of vehicles imported from Mexico and Canada are eligible to use” exclusively for the value of the non -American non -American content of automobile. “
According to the Federal Registry, the Federal Registry said, “As of Tuesday, May 20, importers of Mexican vehicles looking for priority in the US content on automobiles can” submit documents on a sample tax basis, and identify the type and value of the US content that is said to be imported in the United States. “
Their documents will be reviewed by the Trade Department for “fullness and compliance”.
If a submission is considered to be proper, they do not need an importer to pay 25% of the US content on vehicles brought to the United States.
The Commerce Secretary has announced that “this (priority) treatment may be extended in advance to qualify for imported vehicles at his discretion,” the importers may be repaid for the fees already paid.
The announcement is that if the habits and the Border Protection are determined to be more sustained or contradicted with a US content person approved by the Secretary, the announcement (from the date of the wrong exaggeration from April 3, 2025, from April 3, 2025) and the future will be applicable.
Ebrard said the business sector was considered “very positive”, which establishes “priority therapy for the automotive industry in Mexico and Canada.”
‘For many companies, the fee is constantly near 25%’
Although Ebraht celebrates Priority Auto Treatment given to Mexico by the United States, the President Global coalition solutions.
Adriane Gonzalez said that US vehicle manufacturers like Ford and General Motors may have 40% (or more) of the vehicles they make in Mexico, not Japanese and German manufacturers.
So, “For many companies, the fee is constantly near 25%,” he said.
Volkswagen, Toyota and Nissan include non -American vehicle manufacturers with plants in Mexico.
Under the USMCA rules, before the new vehicle charges-a vehicle can enter the United States at least 75% of its content, at least 75% of its content, ie Mexico, the United States and Canada.
Gonzalez has stated that the US has agreed to reduce its vehicle fare on vehicles from the United Kingdom 10% for 100,000 cars per yearAnd “Mexico should desire something similar, or even push for the zero that gives the United States to zero.”
With reports from ReformOvarian EconomistOvarian FinanceOvarian ReoidOvarian Lopez-Digo Digital And Day
