Staying Ahead of Mexico-US Tariffs

US President Donald Trump recently announced a hold on the administration’s 5 percent tariff on all Mexican imports into the United States, pending a briefing and agreement on border immigration with the Mexican government. The administration originally planned to raise tariffs steadily to 25 percent by October 2019 before negotiations took place last Friday, June 7, and still intend to do so should current agreements not be settled.

Currently, tariffs have been put on hold for the immediate future. These tariffs were projected to have a significant impact on the automotive industry, as imports from Mexico into the U.S. represent 79 percent of the country’s total vehicle import while 37 percent of US imports of auto parts.

According to the Center for Automotive Research, a five percent tariff would mean that new vehicle builds in the United States would increase by an average of $250 per vehicle, while imported Mexican vehicle prices would raise an additional $1,100. This news is also expected to impact the US-Mexico-Canada-Agreement (USMCA), which has not yet been ratified by any country and was expected to be finalized later this year.

ARI remains committed to providing our customers and our employees with the most transparent updates around our industry. Our teams of business intelligence experts, supply chain and parts specialists, and much more are focused on fleet management on a global level, and that will not change. We also will continue to strengthen our working relationship with the organizations served by ARIZA, a joint fleet management venture between ARI and Corporación Zapata located in Mexico City.

You can find out more about key impacts and development from past tariffs using our Tariff Fact Sheet, and learn more our partneres at Ariza by visiting ARIZA.com.mx.