Mexican auto sector faces plant closures and 180,000 job losses over US tariffs

Chinese automotive firms operating in Ramos Arizpe, Coahuila, have closed or cut back production after the United States raised tariffs and trade uncertainty grew, municipal mayor Tomás Gutiérrez said. Some companies have disappeared, others have paused lines, while negotiations with new investors could eventually create up to 3,800 jobs.

Industry analysts estimate that the autoparts segment of Mexico’s manufacturing base has lost about 180,000 jobs, part of a broader reduction of roughly 240,000 manufacturing positions. The decline is linked to cost‑cutting measures and increased automation triggered by the tariff dispute, which also weakens workers’ bargaining power in wage negotiations.