China was the leading car supplier to Mexico in 2023, exporting $4.6 billion worth of vehicles to the county, according to the Mexican Ministry of Economy.
Blocked from the U.S. by tariffs, Chinese electric vehicle makers have looked elsewhere to sell their high-tech cars. But as Mexico has emerged as a hot spot for Chinese EVs, Washington officials worry the country may be used as a
"Mexico is an attractive production platform, not only for Chinese companies, but for other companies as well, in part because of that free trade access that it has to the American market," said Scott Paul, president of the Alliance for American Manufacturing."And it can do something that in trade terms is called circumvention."
While meeting the USMCA requirements is difficult, the potential scenario terrifies U.S. lawmakers and auto companies.
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