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07.08.202612:03:40UTC+00Mexico Car Output Falls for 2nd Month

Mexico’s auto production fell 2.2% year-on-year to 302,673 units in July 2026, following a 1.9% decline in June. The drop underscored persistent uncertainty in the automotive sector, as shifting US trade policies continued to cloud manufacturers’ production strategies.

In his second term, US President Trump imposed a series of tariffs on numerous countries, including Mexico. Although the Trump administration chose not to renew the USMCA, the agreement is set to remain in force for another decade unless one of the members formally withdraws. In the meantime, annual reviews could still result in significant revisions to its terms. Parallel to this, the US and Mexico are pursuing ongoing bilateral trade negotiations.

Production declines were particularly steep at several major manufacturers: Mercedes (-98%), Honda (-26%), Stellantis (-20.3%), and Nissan (-18.9%).

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