As Chinese-made heavy trucks continue to surge in Mexico, this is becoming a new obstacle for the country’s bid to secure exemption from US tariffs. Washington is persistently pressuring its southern neighbor to provide assurances that it will not act as a 'back door' for Chinese manufacturers to penetrate the North American market.
Bloomberg reported on Saturday (July 18), citing two people familiar with the matter, that in the past six years, Mexico’s total imports of Chinese trucks have increased more than sevenfold, and the number of Chinese automotive companies operating locally has jumped to around 23. This trend has raised concerns among local Mexican manufacturers and US authorities.
According to the sources, US negotiators are increasingly worried that the Chinese vehicles and components pouring into Mexico will eventually profit from the North American supply chain. Such concerns have made Mexico’s efforts to exempt its heavy-duty trucks and parts from US-imposed tariffs on Chinese goods significantly more difficult.
Currently, Mexico’s trade representatives are trying to break down US trade barriers, and this dispute goes straight to the heart of the USMCA (United States–Mexico–Canada Agreement) review: Mexico must convince Washington that it stands in lockstep with the US on China, while also protecting its own automotive industry from the shock of cheap imports and preserving access to its largest market—the US.
Currently, Mexico’s trade representatives are trying to break down US trade barriers, and this dispute goes straight to the heart of the USMCA (United States–Mexico–Canada Agreement) review: Mexico must convince Washington that it stands in lockstep with the US on China, while also protecting its own automotive industry from the shock of cheap imports and preserving access to its largest market—the US.
It is expected that these topics will become the focus of the third round of US-Mexico bilateral talks to be held next Tuesday (the 21st) in Mexico City. Previously, the US has stated that it will not renew the USMCA in its current form, but during ongoing trilateral negotiations on issues including autos, steel, supply chains, and China’s role in North America, the agreement remains in effect.
Mexico’s heavy vehicle industry is facing enormous survival pressure. Official data show that in the first half of this year, the output of heavy vehicles fell by 13% year-on-year, and overseas shipments dropped by 14.5%. Notably, the US absorbed up to 92.3% of sales, highlighting the sector’s vulnerability to changes in US trade policy.
According to the US Trade Representative’s Office’s (USTR) automotive report for 2026, Washington will impose a 25% tariff on Chinese heavy-duty trucks and parts in November 2025. However, if the vehicles comply with USMCA standards, this tariff may only apply to the portion of value derived from non-US parts.
According to the US Trade Representative’s Office’s (USTR) automotive report for 2026, Washington will impose a 25% tariff on Chinese heavy-duty trucks and parts in November 2025. However, if the vehicles comply with USMCA standards, this tariff may only apply to the portion of value derived from non-US parts.
In Mexico, domestic manufacturers accuse their Chinese competitors of grabbing market share with low-cost advantages and claim that the relevant sales data lack transparency. They point out that some Chinese vehicles enter the country with customs-declared values far below market prices, seriously distorting the competitive environment.
As a result, Mexican bus and truck manufacturers are calling for a 'dual-pronged' solution: on one hand, imposing tariffs up to 50% on heavy vehicles from countries without a free trade agreement with Mexico (mainly China; current tariff ranges from 5% to 20%); on the other hand, urging the US to regard trucks made in Mexico as part of North America’s industrial base rather than a security threat.
It is understood that Chinese brands with clear records of heavy truck or bus operations in Mexico currently include Yutong Bus, BYD, and FAW Group (China FAW).