MEXICO CITY, May 2 (Xinhua) -- Mexico on Friday welcomed a U.S. decision to exempt Mexican auto parts from tariffs under the United States-Mexico-Canada Agreement (USMCA), calling it a major breakthrough for the country's manufacturing sector.
Secretary of Economy Marcelo Ebrard said the exemption was confirmed in new U.S. customs guidance published Thursday, reaffirming that Mexican auto parts will be treated as if they originated in the United States and will enter duty-free.
"This is a significant step forward," Ebrard said during the government's daily press briefing. "Mexican auto parts, and those headed to Canada as well, will continue receiving the preferential treatment guaranteed by our treaty."
Ebrard, who has led negotiations with U.S. officials, said the development reflects progress in avoiding new trade barriers and protecting cross-border supply chains. He added that President Claudia Sheinbaum has made the issue a top priority.
"You can't slap a 25 percent tariff on auto parts, plus another 25 percent on steel, aluminum, and final products - that would wipe out entire companies," he said, referring to ongoing talks with U.S. Commerce Secretary Howard Lutnick.
The tariff suspension follows the sixth phone call between Sheinbaum and U.S. President Donald Trump, during which both agreed to keep working toward solutions on trade and other bilateral issues.
Mexico continues negotiations with the United States to prevent the implementation of Trump's broader executive orders targeting key industrial sectors. ■