Auto parts: the trade that crosses the Mexico-US border in both directions

← Mexico Trade Corridor

Mexico Trade Corridor · Product brief · HS 8708

Mexico is the largest foreign supplier of auto parts to the United States, and the US is a major supplier of parts to Mexico. This brief sets out the numbers from both sides, the rules in force, and where suppliers need working capital.

Published October 23, 2026 · Facts as of October 23, 2026 · 10 min read · Trade data: UN Comtrade, 2020 to 2025 · Rules as of October 23, 2026

Facts as of October 23, 2026. This page states the facts as they stood on that date. Tariffs, rules and figures may have changed since publication. Tariffs and trade policy change often, so we review these pages every month and update them.

#3

Mexico's No. 3 export to the US in 2025, ranked by value as reported by Mexico (UN Comtrade, 4-digit HS codes). It is also No. 2 among imports from the US. The US figure is shown beside it because the two countries count the same trade differently.

US$36.8bnMexico's exports to the US, 2025, as reported by Mexico

US$35.2bnThe same flow, 2025, as reported by the US

+59.7%Change 2020 to 2025, Mexico data

US$16.6bnMexico's imports from the US in the same code, 2025, Mexico data

What is it?

HS 8708 covers parts and accessories for cars, trucks and buses, such as bumpers, brakes, gearboxes, axles, steering parts, airbags and wheels. Mexico reported US$36.8 billion of these exports to the US in 2025 ¹.

Why does it matter?

Auto parts are Mexico's third-largest export to the US and its second-largest import from the US. Many parts cross the border more than once before a vehicle is finished, so a change in a tariff or a rule of origin reaches plants in both countries ^1,3.

How does it work?

Suppliers make parts in northern and central Mexico, send them by truck or rail through ports such as Laredo, and invoice vehicle makers on credit terms. Parts that meet USMCA rules of origin are exempt from the US Section 232 tariff on parts, for now ^4,6.

In this brief

1. How big is the auto parts trade between Mexico and the US?
2. Which parts cross the border?
3. Who makes the parts, and where?
4. How do the parts get from the plant to the buyer?
5. Which rules and tariffs apply?
6. Where do suppliers need cash, and how is it financed?
7. What should auto parts traders watch next?

01How big is the auto parts trade between Mexico and the US?

Mexico reported US$36.8 billion of auto parts exports to the US in 2025. That is up 59.7% from US$23.0 billion in 2020, and down 1.5% from 2024 ¹. Auto parts were 6.7% of Mexico's US$545.4 billion of reported exports to the US ¹.

Trade also runs south. Mexico reported US$16.6 billion of auto parts imports from the US in 2025, up 37.1% since 2020 ¹. On Mexico's figures, the country sold US$20.2 billion more auto parts to the US than it bought from the US ¹.

The two countries count the same trade differently. For 2025, US data shows US$35.2 billion of auto parts imports from Mexico and US$18.9 billion of exports to Mexico ¹. Our data gap explainer sets out why the two sides differ.

The national auto parts industry body, INA, uses a wider definition than HS 8708. It counted US$119.0 billion of auto parts production in Mexico in 2025, with US$103.5 billion of exports, 87% of them to the US ². INA reports that Mexico supplied 43.74% of US auto parts imports in 2025 ².

Chart

Auto parts trade, both directions, both sides of the data

• Mexico to US, Mexico data
• Mexico to US, US data
• US to Mexico, Mexico data
• US to Mexico, US data

US$ billion. Solid lines: as reported by Mexico. Dashed lines: as reported by the US. Source: UN Comtrade, 2020 to 2025.

02Which parts cross the border?

Body parts lead. The 6-digit line for body parts not listed elsewhere was US$8.1 billion in 2025, or 22.0% of the total, as reported by Mexico ¹. Other parts not listed elsewhere follow at US$5.6 billion, then brakes at US$4.4 billion and gearboxes at US$4.0 billion ¹.

The southbound mix is different. Gearboxes are the largest line Mexico buys from the US, at US$4.4 billion in 2025, or 26.3% of its auto parts imports from the US ¹. Parts move both ways because vehicle makers split production between plants in both countries.

Chart

The largest auto parts lines Mexico ships to the US

US$ billion and share of the 4-digit total, 2025, as reported by Mexico. Source: UN Comtrade.

03Who makes the parts, and where?

Production is spread across the north and the center of Mexico. In 2025, Coahuila made 15.0% of output, Guanajuato 13.6% and Nuevo León 13.1%. The top 10 states made about 87% ². By region, the North made 44.1%, the Bajío 35.8% and the Center 15.1% ².

The suppliers range from global groups to small local firms. Aptiv says in its 2025 annual report that its regional model serves the North American market mainly from Mexico ¹⁵. Lear had 48,600 employees in Mexico at the end of 2025 ¹⁶. Below these tier 1 groups sit tier 2 and tier 3 suppliers, many of them small and medium-sized firms, that make castings, stampings, wiring and electronics.

By segment, INA puts electrical parts first at 19.3% of 2025 production, then transmissions and clutches at 9.8%, and seats and textiles at 9.1% ². Seats have their own brief: seats.

04How do the parts get from the plant to the buyer?

Most parts travel by truck. In 2025, Laredo, Texas handled 46.1% of the value of US-Mexico truck trade, or US$296.2 billion. Ysleta in El Paso handled 17.5% and Otay Mesa 9.1% ⁴. Rail carries parts through Laredo, Eagle Pass and El Paso ⁴. Our guide to border crossings covers each port.

Vehicle plants work on tight delivery schedules, so delays at the border cost money on both sides. The sale contract sets who pays for each leg and who clears customs, usually through an Incoterms rule such as FCA or DAP. The Incoterms guide explains each one.

1. Plant in MexicoA supplier in Coahuila, Guanajuato or Nuevo León makes the part for a vehicle maker's program.
2. PaperworkThe supplier issues a commercial invoice and a USMCA certification of origin. A customs broker files the Mexican export declaration.
3. Truck or railThe part travels north by truck or rail. Laredo handles the largest share of truck trade value.
4. US customsThe US importer claims USMCA treatment or pays the duty that applies to the tariff line.
5. Vehicle plantThe part reaches an assembly plant or an aftermarket distributor. The invoice is now due on the agreed terms.

Trucks carry most auto parts trade across the border. Laredo handled 46.1% of US-Mexico truck trade value in 2025.

05Which rules and tariffs apply?

Two questions decide what a part pays when it enters the US. First, does it meet the USMCA rules of origin? Second, is its tariff line on a Section 232 list?

Under USMCA, core auto parts need 75% regional value content. Vehicle makers must buy 70% of their steel and aluminum in North America, and 40% of a vehicle's labor value (45% for light trucks) must come from work paid at least US$16 an hour ⁵. Our guide to USMCA rules of origin explains the certificate.

The US Section 232 tariff of 25% has applied to listed auto parts since May 3, 2025. Parts that qualify under USMCA are exempt until the US Commerce Department sets up a process to tax their non-US content ^6,7. Separate Section 232 duties apply to steel, aluminum and copper at 50%, 25% or 15%, depending on which annex lists the product ⁸. Each part's tariff line must be checked against the annexes.

The 10% Section 301 tariff on Mexican goods, in force since July 24, 2026, does not apply to goods entered with a USMCA claim or to goods under Section 232 ⁹. All rates here are as of October 23, 2026.

Rules in force

As of October 23, 2026. Live list: corridor watch.

Measure	What it does	Since	Status
USMCA auto rules of origin	75% regional value content for core parts; 70% North American steel and aluminum; 40% labor value content (45% light trucks) 5	Jul 1, 2020	In force
US Section 232, auto parts	25% on listed parts. USMCA-qualifying parts exempt until Commerce sets a process to tax non-US content 6,7	May 3, 2025	In force
US Section 232, steel, aluminum and copper	50% (Annex I-A), 25% (Annex I-B) or 15% (Annex I-C), set by tariff line, under Proclamation 11032 8	Jun 8, 2026	In force
US Section 301, forced labor	10% on Mexican goods. Exempt with a USMCA claim; goods under Section 232 excluded 9	Jul 24, 2026	In force
US auto tariff offset	Offset of 3.75% of vehicle value for US-assembled vehicles, extended through 2030. Confirm the end date in the Federal Register 10	Oct 17, 2025	Check end date
Mexico duty exemption, tariff line 9803.00.01	Parts imported by automakers with fiscal-warehouse authorization move from 10% to exempt for five years 11	Oct 14, 2026	Guidelines pending

06Where do suppliers need cash, and how is it financed?

A parts supplier pays for tooling, materials, wages and freight long before the vehicle maker pays the invoice. Atradius reports that two- to three-month credit terms are common in Mexico, and that medium and large industrial firms give the longest terms ¹³. Tariff costs add to the gap, because duties are paid when goods clear customs.

Most of this trade runs on open account terms, where the buyer pays after delivery. That makes the supplier's unpaid invoices its largest short-term asset, and the base for most finance options below. Our guides to finance for tier 1 and tier 2 suppliers and factoring in Mexico go further.

Mexico's development bank Nafin runs a supplier finance platform, Cadenas Productivas. Under an agreement signed in September 2026 with the Nuevo León auto cluster, CLAUT, Nafin offers factoring with rate discounts and loans of up to MXN 10 million to small auto suppliers ¹⁴.

Where the cash goes

From program award to payment

1. Before production
   Tooling and launchThe supplier pays for molds, dies and line set-up for a new vehicle program.
2. Production
   Materials, wages and dutiesSteel, resin, copper and electronics are bought and workers are paid. Imported inputs may carry duties unless they enter under a program such as IMMEX.
3. Shipment
   Freight and customsTrucking, the customs broker and any US duty are paid at or near the border.
4. Invoice
   Waiting for paymentThe buyer pays on its terms. Two- to three-month terms are common in Mexico ¹³.
5. Payment
   Cash returnsDeductions or disputes can cut or delay the payment. See deductions and chargebacks.

The order of cash needs is typical for a parts supplier. Actual days depend on each contract.

Before shipmentPre-shipment finance

Funds materials and production against a confirmed purchase order.

After invoice, large buyerPayables finance

The vehicle maker approves the invoice and a finance provider pays the supplier early, also called reverse factoring.

After invoice, any buyerFactoring or invoice discounting

The supplier sells or borrows against its unpaid invoices.

Buyer may not payTrade credit insurance

Covers most of an unpaid invoice if a covered buyer fails to pay.

07What should auto parts traders watch next?

USMCA stays in force. On July 1, 2026 the US did not agree to renew it in its current form, so the agreement now goes through annual joint reviews until 2036 unless the three countries confirm an extension ¹². Reported US requests include regional value content near 82% and a 50% US-content rule. Mexico rejects a country-specific US content rule ^7,11. The live list of measures is on our corridor watch page.

• By Dec 2026Fourth round of US-Mexico talks on autos. No date announced as of October 18, 2026 ¹¹.
• PendingSecretaría de Economía guidelines for the new 9803.00.01 parts duty exemption ¹¹.
• Jan 12, 2027Deadline for public comments to the US Trade Representative on the USMCA review ¹¹.
• Dec 31, 2027Section 232 metals rates under Proclamation 11032 run to this date ⁸.
• Jul 1, 2036USMCA ends on this date unless the three countries confirm an extension. Annual reviews run until then ¹².

Questions traders ask

How much auto parts trade is there between Mexico and the US?

Mexico reported US$36.8 billion of auto parts exports to the US in 2025 and US$16.6 billion of imports from the US, under HS 8708. US data shows US$35.2 billion of imports from Mexico and US$18.9 billion of exports to Mexico.

Do Mexican auto parts pay US tariffs?

Parts that meet USMCA rules of origin are exempt from the 25% Section 232 tariff on auto parts until the US Commerce Department sets a process to tax their non-US content. Parts that do not qualify pay 25% if their tariff line is listed. Steel, aluminum and copper content can carry separate Section 232 duties. These rules are as of October 23, 2026.

Which Mexican states make the most auto parts?

Coahuila made 15.0% of Mexico's auto parts output in 2025, Guanajuato 13.6% and Nuevo León 13.1%, according to the national auto parts industry body, INA.

How do auto parts suppliers in Mexico get paid?

Most sell on open account, so the buyer pays after delivery. Two- to three-month terms are common in Mexico. Suppliers bridge the wait with payables finance from large buyers, factoring, invoice discounting or bank loans.

Why do Mexico's and the US figures differ?

Each country records its own customs declarations, with different rules for value, country of origin and timing. For auto parts the two sides differ by US$1.6 billion northbound and US$2.3 billion southbound in 2025.

Read next

• Corridor hubThe Mexico to US corridor: what moves and how it is paid for
• Corridor hubCorridor watch: tariffs and rules in force
• Corridor guideUSMCA rules of origin and certificates
• Corridor guideSupplying vehicle makers: finance for tier 1 and tier 2 suppliers
• Product briefPassenger cars: Mexico's second-largest export to the US, by value
• Product briefTrucks and pickups: Mexico's US$35.8 billion export to the US
• Ossiano Trade Finance GuideHow each trade finance instrument works
• GlossaryTrade finance terms in plain English

Supplying auto parts between Mexico and the US? Ossiano Capital works on trade finance in this corridor.

Start the Conversation

Sources and notes

1. UN Comtrade, annual trade data 2020 to 2025, HS 8708, Mexico and the US as reporters. Downloaded October 2026; 2025 figures may be revised. https://comtradeplus.un.org/
2. Industria Nacional de Autopartes (INA), 2025 results, via Cluster Industrial, March 9, 2026. https://clusterindustrial.com.mx/industria-de-autopartes-en-mexico-cierra-2025-con-produccion-de-119-002-mdd/
3. Congressional Research Service, U.S.-Mexico Trade Relations (IF11175), August 13, 2026. https://www.everycrsreport.com/files/2026-08-13_IF11175_366b72c3fd2f3ebe10b28bf3feddca0088251bbb.html
4. Air Freight News, US Bureau of Transportation Statistics transborder freight data, 2025 annual report, March 17, 2026. https://airfreight.news/articles/full/transborder-freight-data-annual-report-2025
5. Dickinson Wright, Summary of automotive provisions of USMCA. https://media.dwlaw.com/wp-content/uploads/2026/07/03153713/summary-of-automotive-provisions-of-usmca-1.pdf
6. Steptoe, New tariffs on imports of automobiles and automobile parts, April 16, 2025. https://www.steptoe.com/en/news-publications/global-trade-and-investment-law-blog/president-trumps-new-tariffs-on-imports-of-automobiles-and-automobile-parts-key-updates-and-implications.html
7. Baker Donelson, Automotive trade risks escalate as USMCA review, Section 232 tariffs and AD/CVD actions converge, July 15, 2026. https://www.bakerdonelson.com/automotive-trade-risks-escalate-as-usmca-review-section-232-tariffs-and-adcvd-actions-converge
8. Thompson Hine SmartTrade, President modifies Section 232 tariffs on aluminum, copper and steel imports, June 2026. https://www.thompsonhinesmartrade.com/2026/06/president-trump-modifies-section-232-tariffs-on-aluminum-copper-and-steel-imports/
9. EY Tax News, USTR finalizes Section 301 forced labor tariffs on 60 economies, July 2026. https://taxnews.ey.com/news/2026-1607-ustr-finalizes-section-301-forced-labor-tariffs-on-60-economies-additional-tariffs-of-10-percent-or-125-percent-take-effect-24-july-2026
10. Butzel, New Section 232 tariffs on trucks, truck parts and buses; auto tariff offset expanded, October 21, 2025. https://www.butzel.com/alert-new-section-232-tariffs-on-trucks-truck-parts-and-buses-take-effect-november-1-but-the-auto-tariff-offset-expanded-to-support-suppliers
11. ICPA, USMCA joint review automotive tracker, October 18, 2026. https://www.icpainc.org/usmca-joint-review-automotive/
12. White & Case, USMCA 2026 joint review: United States declines to extend agreement, July 2, 2026. https://www.whitecase.com/insight-alert/usmca-2026-joint-review-united-states-declines-extend-agreement-triggering-annual
13. Atradius, B2B payment practices trends in Mexico, 2026. https://atradius.us/knowledge-and-research/reports/b2b-payment-practices-trends-in-mexico-2026
14. Cluster Industrial, CLAUT and Nafin support finance for auto SMEs in Nuevo León, September 2026. https://clusterindustrial.com.mx/claut-y-nafin-impulsan-financiamiento-para-fortalecer-a-las-pymes-automotrices-de-nuevo-leon/
15. Aptiv PLC, Form 10-K for fiscal year 2025, US Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1521332/000152133226000009/aptv-20251231.htm
16. Lear Corporation, Form 10-K for fiscal year 2025, US Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/842162/000084216226000011/lear-20251231.htm

Trade values are US dollars from UN Comtrade at the 4-digit HS level unless a 6-digit line is named. Mexico and the US record the same shipments under different rules for value, country of origin and timing, so their figures differ. Percent changes compare 2025 with 2020. All facts on this page are as of October 23, 2026, the date of publication, and may have changed since. Rules and tariffs are as of October 23, 2026 and change often: check the corridor watch before you act.

About this brief. Prepared for Ossiano Capital. People planned, researched, wrote and checked this brief, using AI tools to help with research and checking. You are welcome to quote or reuse it: please credit Ossiano Capital and link to this page.