Auto Parts from Mexico: 27.5% US Tariff (2026)

Mexico is the largest source of auto parts imports to the United States. On a listed part of a passenger vehicle or light truck in U.S. note 33(g) — for example HTS 8708.29 — the default calculator result is 27.5%: Column 1-General 2.5% plus the 25% in heading 9903.94.05. A USMCA special claim on that same part, other than a knock-down kit or parts compilation, takes heading 9903.94.06 and pays only the Column 1-Special duty, which is often 0%.

USMCA qualification for auto parts requires 75% regional value content (North American content from US, Mexico, or Canada). Additionally, 70% of steel and aluminum used must originate in North America, and 40-45% of auto content must be made by workers earning at least $16/hour (the labor value content requirement).

The gap between those two results is the whole point of the claim. On a $500,000 shipment of a listed part, 27.5% is $137,500 and a free special claim is $0. Heading 8708 also contains lines that are not in note 33(g). Those uncovered lines are not this 27.5% figure.

Mexico's auto parts industry is deeply integrated with US automakers. Major US, Japanese, and German manufacturers operate extensive parts production in Mexico. Key exports include engines and engine parts, wiring harnesses, transmissions, body stampings, brake systems, and electronic control units. Mexico exported approximately $115 billion in auto parts to the US in 2025.

Note 52(f)(3) keeps the forced-labor headings 9903.05.20–9903.05.84 off entries that take headings 9903.94.05 or 9903.94.06. The on-page calculator shows the 27.5% Column 1-General result, not the special claim.

For importers sourcing auto parts from Mexico, USMCA compliance documentation is critical. Maintain certificates of origin, bills of materials, and production records. CBP audits of automotive USMCA claims have increased significantly since 2024.

At the July 1, 2026 joint review, the US declined to renew USMCA in its current form. The agreement remains fully in force and a valid special claim on a listed part still uses heading 9903.94.06. Non-renewal triggers annual reviews for up to 10 years, with the agreement expiring July 1, 2036 only if no extension is ever agreed. Automotive rules of origin, particularly for EV components and batteries, are expected to be a focus of those annual reviews.