Mexico's car production fell 1.9% year-on-year to 354,221 units in June 2026, easing from a 3.7% decline in May. The result reflected continued uncertainty in the auto sector as changing US trade policies clouded manufacturers' production plans. US President Trump in his second term imposed a series of tariffs on multiple countries, including Mexico. While the Trump administration decided not to renew the USMCA, the agreement will remain in force for another decade unless a member withdraws, with annual reviews that could lead to significant changes. The US and Mexico also continue bilateral trade negotiations. Output declined sharply at Mercedes (-97%), Audi (-52.2%), Nissan (-18.6%), Volkswagen (-7.6%), and Ford (-7.3%).