Mazda Faces Tariffs, Shifts Exports Beyond U.S.
Mazda is going through some tough times right now, especially with its production and export strategy. The company, which has long relied heavily on the U.S. market, is being forced to rethink its approach because of shifting trade conditions and higher tariffs. In fact, Mazda’s exports from Mexico have dropped significantly—by about 28% in the first half of 2025. That’s a big hit, considering that nearly 70% of the vehicles built at its Salamanca plant were once shipped straight to the United States.
The challenge really stems from tariffs. Cars coming from Mexico are being slapped with a 25% tariff, while Japanese and European exports are only facing tariffs closer to 15% or even less. On top of that, Mexico’s exports to the U.S. are bound by USMCA rules, which demand that 75% of a vehicle’s content must be sourced from the region, with strict requirements on components like engines and transmissions. That adds more cost pressure, making Mexico-built vehicles less competitive compared to those coming from other regions.
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Mazda Mexico’s president, Miguel Barbeyto, has been pretty straightforward about the situation. He admitted production is slowing, exports are down, and the company simply cannot afford to wait until the USMCA review in 2026 to adjust its strategy. Instead, Mazda is already exploring other markets, particularly in Latin America. Argentina and Brazil are being evaluated as possible destinations, but each comes with its own hurdles. Argentina’s trade agreements are being renegotiated, and Brazil’s preference for ethanol-powered engines poses a technical challenge for Mazda, since the company hasn’t yet developed compatible vehicles. Logistics are another complication, as Latin America lacks efficient rail lines, meaning most exports would need to travel by ship and then by road, adding both cost and time.
Mazda isn’t the only automaker feeling the strain. Other brands like Mercedes-Benz, Volkswagen, Stellantis, and BMW have also reported double-digit declines in their Mexican exports. However, some companies, like Ford, have tried to offset tariffs by raising vehicle prices. Mazda, on the other hand, is more cautious, pointing out that higher prices might push buyers away entirely.
The broader concern here is that Mexico’s automotive supply chain—built over decades to support exports to the U.S.—is also at risk. If Japanese carmakers like Mazda, Toyota, Honda, and Nissan start reducing their reliance on Mexico for U.S. exports, hundreds of local suppliers could feel the ripple effect. Industry leaders are already warning that competitiveness is on the line, and negotiations between Mexico and the U.S. will be crucial to avoid an even steeper downturn.
For Mazda, the immediate challenge is finding that balance: staying profitable at Salamanca while slowly building a foothold in Latin America. It won’t be easy, and it won’t be quick, but one thing is clear—the automaker can no longer rely on its old playbook. A global shift in trade and tariffs has forced Mazda to rethink the road ahead.
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