SAN DIEGO (Border Report) — Production and exports of cars made in Mexico were down for the month of October as tariffs and commercial tensions with the United States continue to have an impact, according to Mexico’s Nationals Institute of Statistics and Geography.
In its monthly report, the institute reports that 367,870 light trucks and other vehicles were assembled during the past month in Mexico, a 4% drop from the average monthly figure.
As for exports, the number was down by 5.5% in October.
In spite of this, the institute’s report says that while the numbers have dipped, “exports to the international market remain stable.”
It also states that more of the vehicles assembled in Mexico remained south of the border for the domestic market.
For the past month, almost 130,000 vehicles made in Mexico were sold in that country, a 5% increase when compared to October of last year.
Through June, Mexico’s auto industry was operating at near record numbers seemingly immune to the tariffs initially imposed by President Trump, according to Odracir Barquera, director general for the Mexican Automotive Industry Association.
“This is the strongest June since records began,” he told Mexico’s Business News.
By mid-May, Mexican Economy Minister Marcelo Ebrard negotiated a deal that dropped the average tariff rate to 15% for Mexican vehicle exports, 10 percentage points below the general rate.
According to Mexico Business News publication, the adjustment gave Mexican exports a competitive edge over shipments from countries like Japan, South Korea, and Germany, which remain subject to the full 25% tariff.
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