Gasoline engines: a two-way trade between Mexico and US vehicle plants

← Mexico Trade Corridor

Mexico Trade Corridor · Product brief · HS 8407

Gasoline engines cross the Mexico-US border in both directions, from engine plants to vehicle assembly lines. This brief sets out the numbers from both sides, the rules in force, and where engine buyers and sellers 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.

#9

Mexico's No. 9 import from the US in 2025, ranked by value as reported by Mexico (UN Comtrade, 4-digit HS codes). The US figure is shown beside it because the two countries count the same trade differently.

US$3.7bnMexico's imports from the US, 2025, as reported by Mexico

US$3.5bnThe same flow, 2025, as reported by the US

+155.2%Change 2020 to 2025, Mexico data

US$2.9bnMexico's exports to the US in the same code, 2025, Mexico data

What is it?

HS 8407 covers spark-ignition piston engines, such as gasoline engines. Most of the trade is engines of more than 1,000cc for cars and trucks. Mexico reported US$3.7 billion of these imports from the US in 2025 ¹.

Why does it matter?

Gasoline engines are Mexico's ninth-largest import from the US, and imports grew 42.6% in 2025. An engine's origin counts toward a vehicle's USMCA content, so where engines are made affects the tariff on the finished vehicle ^1,6.

How does it work?

Vehicle makers run engine plants in both countries and ship engines across the border to their assembly lines. Most of these sales stay inside one company group. Sales to independent buyers run on credit terms that can be insured or financed ^2,12,14.

In this brief

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

01How big is the gasoline engine trade between Mexico and the US?

Mexico reported US$3.7 billion of gasoline engine imports from the US in 2025. That is up 155.2% from US$1.4 billion in 2020, and up 42.6% from US$2.6 billion in 2024 ¹. Gasoline engines were 1.5% of Mexico's US$249.9 billion of reported imports from the US ¹. US data shows US$3.5 billion of exports to Mexico, so the two sides are close on this flow ¹. No source we found explains the jump in 2025.

Trade also runs north. Mexico reported US$2.9 billion of gasoline engine exports to the US in 2025, down 12.1% from 2024 ¹. Here the figures differ. US data shows US$4.2 billion of imports from Mexico, US$1.3 billion more than Mexico reports ¹. Our data gap explainer sets out the general reasons the two countries' figures differ.

The balance depends on whose data you use. On Mexico's figures, the country bought US$0.8 billion more gasoline engines from the US than it sold ¹. On US figures, the US bought more from Mexico than it sold there.

The engines going each way differ in price. US customs data shows 1,777,026 engines exported to Mexico in 2024, at an average value of US$1,425. Engines imported from Mexico averaged US$2,306 that year and US$2,465 in 2025 ¹. The data does not show which engine types explain the difference.

Chart

Gasoline engine 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 engines cross the border?

Engines of more than 1,000cc for road vehicles dominate. That 6-digit line was US$3.5 billion in 2025, or 95.4% of Mexico's gasoline engine imports from the US, as reported by Mexico ¹. Other engines were US$0.1 billion, or 3.5%, and outboard motors for boats were US$19 million ¹.

The northbound mix is similar. The same vehicle engine line was US$2.7 billion, or 92.6% of Mexico's 4-digit export total to the US ¹.

Chart

The gasoline engine lines Mexico buys from the US

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

03Who makes the engines, and where?

Several vehicle makers build engines in Mexico. Stellantis has built engines in Saltillo, Coahuila since 1981 and opened a second engine plant there in 2010. In September 2021 it made its 21 millionth Saltillo engine, a 3.6-liter V6 for a Jeep Wrangler built in Toledo, Ohio. Stellantis said then that most Saltillo engines ship to assembly plants in the US and Canada ².

Ford's engine complex in Chihuahua opened in 1983 and had built about 14 million engines by November 2023. At that date it built 2.0-liter and 2.5-liter four-cylinder engines and a 1.5-liter three-cylinder engine ³. Nissan's powertrain plant in Aguascalientes has made engines since 1982 and built its 11 millionth engine in 2015 ⁴. Those are older figures. Nissan stopped production at its CIVAC plant in Morelos in March 2026 ⁵.

The southbound flow is harder to trace. No public source we found names the US plants that ship gasoline engines to Mexico, or the Mexican plants that receive them. Vehicles built with these engines are covered in our passenger cars brief.

US customs data shows 1,777,026 gasoline engines exported to Mexico in 2024, at an average value of US$1,425 each.

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

Engines travel by truck or rail between the engine plant and the assembly plant. Our guide to border crossings covers the main ports and rail lines. Assembly plants build to a schedule, so engine plants run in step with vehicle output.

The Mexican buyer is the importer of record and files the customs declaration through a broker. The sale contract sets who pays for each leg and who clears customs, usually through an Incoterms rule. Mexican import duties and VAT are covered in our landed cost guide.

1. Engine plantAn engine plant in the US builds the engine for a vehicle program, often for its own group's assembly plant in Mexico.
2. PaperworkThe seller issues a commercial invoice and origin documents for the USMCA claim.
3. Truck or railThe engine travels south by truck or rail to the border.
4. Mexican customsThe importer's broker files the customs declaration and pays any duty and VAT.
5. Assembly plantThe engine goes into a car or truck, many of them built for the US market. The invoice is now due on the agreed terms.

05Which rules and tariffs apply?

Engines count as auto parts under the US Section 232 tariff. Listed parts have paid 25% since May 3, 2025. Parts that qualify under USMCA are exempt until the US Commerce Department sets a process to tax their non-US content ^6,7. Whether each HTS 8407 line is on the parts list is not confirmed. The USMCA rules for auto parts are set out in our auto parts brief.

Section 232 duties on steel, aluminum and copper apply whether or not a good qualifies under USMCA ⁸. Since June 8, 2026, they are 50% for Annex I-A articles, 25% for Annex I-B derivatives and 15% for Annex I-C machinery codes ⁹. Which annex, if any, lists each engine line must be checked.

Mexico has cut a duty that can apply to US engines. A decree published on October 13, 2026 moved tariff line 9803.00.01, for vehicle-assembly parts imported by automakers with fiscal-warehouse authorization, from 10% to exempt for five years. Mexico's economy ministry had not published the guidelines as of October 18, 2026 ⁸.

The 10% Section 301 tariff on Mexican goods does not apply to goods entered with a USMCA claim or to goods under Section 232 ¹⁰. 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
US Section 232, auto parts	25% on listed parts, including engines. USMCA-qualifying parts exempt until Commerce sets a process to tax non-US content 6,7	May 3, 2025	In force
HTS 8407 lines on the parts list	Whether each gasoline engine line is listed under Section 232. Check each line 6	May 3, 2025	Under monthly review
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. Annex for engine lines not confirmed 8,9	Jun 8, 2026	Check annex
US Section 301, forced labor	10% on Mexican goods. Exempt with a USMCA claim; goods under Section 232 excluded 10	Jul 24, 2026	In force
Mexico duty exemption, tariff line 9803.00.01	Parts imported by automakers with fiscal-warehouse authorization move from 10% to exempt for five years 8	Oct 14, 2026	Guidelines pending
EXIM charter	EXIM can approve new deals only if Congress renews its charter. No renewal passed as of Oct 23, 2026 15,16	Ends Dec 31, 2026	Renewal pending

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

Most engines cross the border inside one company group, so payment runs through accounts inside the group. Engine plants still carry large stocks of castings, forgings and electronics, and those stocks need inventory finance or other funding.

Independent sellers face more risk. The US Commercial Service says many Mexican importers pay 30 to 45 days late, and that collecting from a buyer who does not pay can need travel and a lawyer ¹². Mexican suppliers that sell parts to engine plants face the same long terms as other auto suppliers. Our guide to finance for tier 1 and tier 2 suppliers covers their options.

US sellers can use export credit. The Export-Import Bank of the United States (EXIM) can guarantee 90% of a bank loan that funds export production, and it insures sales against non-payment ¹⁴. Its schedule of July 30, 2026 places no restriction on Mexico ¹³. EXIM's charter ends on December 31, 2026. If it lapses, EXIM cannot approve new deals but can service existing ones. As of October 23, 2026, we found no report that Congress had passed a renewal ^15,16. See US export credit for buyers in Mexico.

Where the cash goes

From engine order to payment

1. Before production
   Program set-upThe engine plant buys tooling and sets up lines for a new vehicle program.
2. Production
   Materials and stockCastings, forgings and electronics are bought and held as stock. Wages are paid.
3. Shipment
   Freight and customsFreight and the Mexican customs broker are paid. Duty and VAT are paid on entry unless an exemption applies.
4. Invoice
   Waiting for paymentThe buyer pays on its terms, or the group settles through intercompany accounts. Many Mexican importers pay 30 to 45 days late ¹².
5. Payment
   Cash returnsThe seller is paid, or claims on its insurance if a covered buyer does not pay.

The order of cash needs is typical for an engine sale. Sales inside one group settle through intercompany accounts on the group's own schedule.

After invoice, large buyerPayables finance

The vehicle maker approves the invoice and a finance provider pays the supplier early.

After invoice, any buyerFactoring or invoice discounting

The seller 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.

US seller needs cash to produceECA-backed finance

An export credit agency such as EXIM guarantees the bank loan that funds production.

07What should gasoline engine traders watch next?

Three dates matter most: the guidelines for Mexico's new parts duty exemption, the Commerce process for non-US content, and EXIM's charter deadline. USMCA stays in force, with annual joint reviews until 2036 unless the three countries confirm an extension 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 ⁸.
• PendingMexico's economy ministry guidelines for the 9803.00.01 parts duty exemption ⁸.
• PendingCommerce process to tax the non-US content of USMCA-qualifying parts ⁷.
• Dec 31, 2026EXIM's charter ends unless Congress renews it ¹⁵.
• Jan 12, 2027Deadline for public comments to the US Trade Representative on the USMCA review ⁸.
• Dec 31, 2027Section 232 metals rates under Proclamation 11032 run to this date ⁹.

Questions traders ask

How large is the gasoline engine trade between Mexico and the US?

Mexico reported US$3.7 billion of gasoline engine imports from the US in 2025 and US$2.9 billion of exports to the US, under HS 8407. US data shows US$3.5 billion of exports to Mexico and US$4.2 billion of imports from Mexico.

Which companies make gasoline engines in Mexico?

Public sources name Stellantis in Saltillo, Ford in Chihuahua and Nissan in Aguascalientes. Stellantis said in 2021 that most of its Saltillo engines ship to assembly plants in the US and Canada.

Do gasoline engines pay US tariffs?

Engines count as auto parts under US Section 232, which charges 25% on listed parts. USMCA-qualifying parts are exempt until the US Commerce Department sets a process to tax non-US content. Metal content can carry separate Section 232 duties. These rules are as of October 23, 2026.

Do US engines pay duty when they enter Mexico?

It depends on the tariff line and the importer. A Mexican decree of October 2026 made parts imported by automakers with fiscal-warehouse authorization under tariff line 9803.00.01 duty free for five years, but the guidelines were still pending in mid-October 2026.

Why do the two countries' figures differ?

Each country records its own customs declarations, with different rules for value, origin and timing. For gasoline engines going north, US data showed US$1.3 billion more than Mexico's data in 2025. No public source explains this specific gap.

Read next

• Product briefAuto parts: the trade that crosses the Mexico-US border in both directions
• Product briefPassenger cars: Mexico's second-largest export to the US, by value
• Product briefDiesel engines: the US-built power inside Mexico's truck plants
• Corridor guideSupplying vehicle makers: finance for tier 1 and tier 2 suppliers
• Corridor guideUS export credit for buyers in Mexico
• Corridor hubCorridor watch: tariffs and rules in force
• Ossiano Trade Finance GuideHow each trade finance instrument works
• GlossaryTrade finance terms in plain English

Trading gasoline engines 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 8407, Mexico and the US as reporters. Downloaded October 2026; 2025 figures may be revised. https://comtradeplus.un.org/
2. Mopar Insiders, Stellantis Mexico celebrates the 21 millionth engine produced in Saltillo, September 10, 2021. https://www.moparinsiders.com/stellantis-mexico-celebrates-the-21-millionth-engine-produced-in-saltillo/
3. Ford Authority, Ford Chihuahua Engine Complex celebrates 40th anniversary, November 24, 2023. https://fordauthority.com/2023/11/ford-chihuahua-engine-complex-celebrates-40th-anniversary
4. Nissan, Nissan produces its 11 millionth engine in Aguascalientes Powertrain Plant in Mexico, November 6, 2015. https://asean.nissannews.com/en/releases/nissan-produces-its-11-millionth-engine-in-aguascalientes-powertrain-plant-in-mexico
5. El Imparcial, Nissan clausura la planta de CIVAC, April 1, 2026. https://www.elimparcial.com/mexico/2026/04/01/el-fin-de-una-era-industrial-nissan-clausura-la-planta-de-civac-con-65-millones-de-autos-fabricados-y-concentra-sus-operaciones-en-complejos-mas-modernos-por-bajos-niveles-de-eficiencia/
6. ST&R, More details on tariffs on cars, trucks and auto parts, April 8, 2025. https://www.strtrade.com/trade-news-resources/str-trade-report/trade-report/april/more-details-on-tariffs-on-cars-trucks-and-auto-parts
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. ICPA, USMCA joint review automotive tracker, October 18, 2026. https://www.icpainc.org/usmca-joint-review-automotive/
9. 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/
10. 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
11. 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
12. US Commercial Service, Mexico Country Commercial Guide, Trade financing, February 17, 2026. https://www.trade.gov/country-commercial-guides/mexico-trade-financing
13. EXIM, Country Limitation Schedule CLS-07/26, effective July 30, 2026. https://img.exim.gov/s3fs-public/tools/countrylimitationschedule/clsjuly2026.pdf
14. EXIM, Export Finance Solutions Guide (undated). https://grow.exim.gov/hubfs/Guides/Export-Finance-Solutions-Guide-Print.pdf
15. Congressional Research Service, Export-Import Bank of the United States: Overview and Reauthorization Issues (R43581), May 7, 2026. https://www.everycrsreport.com/files/2026-05-07_R43581_367edb6d31c632f3b1d32cc175422f66d6d46a33.html
16. Legis1, Export-Import Bank reauthorization, August 21, 2026 (citing a CRS update of August 20, 2026). https://legis1.com/news/export-import-bank-reauthorization-1-faces-1

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.