As US-Mexico-Canada Agreement Negotiations Proceed, US Eyes Chinese-Made Heavy Trucks in Mexico

The sharp rise in the number of Chinese-made heavy trucks in Mexico has become a new obstacle in its quest to avoid U.S. tariffs; Washington is pressuring for assurances that its southern neighbor, Mexico, will not serve as a backdoor for Chinese manufacturers to enter the North American market.

According to two sources familiar with the matter cited by Bloomberg, Mexican imports of trucks from China have increased more than sevenfold over just six years, sparking concerns among local manufacturers and U.S. authorities.

The number of Chinese truck companies operating in Mexico has also surged to around 23, intensifying tensions at a time when Mexican negotiators are trying to secure exemptions from U.S. tariff barriers that have already placed heavy pressure on one of the country’s most integrated export industries.

This dispute touches on the core issue under review in the USMCA negotiations: Can Mexico convince Washington that it stands aligned with the U.S. in countering China, while simultaneously protecting its domestic manufacturers from cheap imported goods and maintaining access to its largest market?

Mexican truck manufacturers are calling for a two-pronged solution: raising domestic tariffs on Chinese vehicles, while urging the U.S. to recognize trucks made in Mexico as part of North America’s industrial base—not as a threat.

This issue is expected to feature prominently in the third round of bilateral talks between the U.S. and Mexico scheduled for Tuesday in Mexico City. The U.S. has stated that the USMCA will not be renewed in its current form; however, the agreement will remain in effect as the three countries continue negotiating on contentious issues including automobiles, steel, supply chains, and China’s role in North America.

The Mexican Ministry of Economy, responsible for USMCA negotiations, declined to comment. Sources revealed that U.S. negotiators are increasingly concerned that Chinese vehicles and parts are entering Mexico and may ultimately benefit from North American supply chains. These concerns are complicating Mexico’s efforts to secure exemption from U.S. tariffs on medium- and heavy-duty trucks and their components.

U.S. Trade Representative Jamieson Greer will attend the meeting. The Office of the U.S. Trade Representative issued a statement Friday saying the discussions will cover “steel, aluminum and their derived products, automobiles, economic security, labor, agriculture, and electronic payment services.”

According to the USTR’s 2026 Automotive Report, Washington imposed a 25% tariff on medium- and heavy-duty trucks and their components in November 2025; however, this tariff may apply only to the non-U.S. content portion of vehicles qualifying under the USMCA.

The Mexican heavy vehicle industry is under mounting pressure. Official data shows production in the sector declined by 13% in the first half of 2026, while exports fell by 14.5%. Notably, the U.S. market absorbed 92.3% of sales, underscoring the industry's vulnerability to shifts in U.S. trade policy.

At home, Mexican manufacturers say Chinese competitors are capturing market share with low-priced vehicles, and their operations lack transparency. Local bus and truck makers are seeking tariffs as high as 50% on heavy vehicles from countries without free trade agreements with Mexico—primarily China. Currently, tariffs on heavy trucks range from 5% to 20%.

Chinese manufacturers and brands with recorded operations in heavy trucks or buses in Mexico include Yutong Bus, BYD, and FAW.

Source: rfi

Original article: toutiao.com/article/1871074971944971/

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