MEXICO CITY (Reuters) -Mexican Economy Minister Marcelo Ebrard said on Tuesday that cars assembled in Mexico and exported to the United States will face an average tariff of 15%, not 25%, citing additional discounts that local products benefit from.
“It’s a very big advantage compared to other countries that export to the United States. Of course, we would love it to be zero,” Ebrard said at an event.
The government of U.S. President Donald Trump had on March 26 announced that it would effectively charge a 25% tariff on all cars not made in the country. This went into effect early last month.
However, carmakers from Mexico and Canada, which are part of a North American free trade agreement with the United States, can apply for preferential discounts, Ebrard told journalists at the event.
Under the agreement, the auto tariff applies only to non-U.S. components in vehicles, provided the percentage of these components can be demonstrated.
Mexico is a major assembler and exporter of cars to the United States.
The Trump administration had faced pressure from automakers to soften the blow of its wide-ranging import taxes.
(Reporting by Diego Ore; Writing by Natalia Siniawski; Editing by Sarah Morland)
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