Import Duty on Mexican-Manufactured Cars Entering the U.S.

Under the USMCA (successor to NAFTA, effective 2020), most passenger vehicles manufactured in Mexico enter the U.S. duty-free if they meet Rules of Origin requirements (≥75% North American content, plus labor value content rules).

Current Tariff Structure

Key Conditions for 0% Duty

• 75% Regional Value Content (RVC) – up from 62.5% under NAFTA.
• Labor Value Content (LVC): 40–45% of vehicle value must come from workers earning ≥$16/hr (phased in).
• Steel/Aluminum: 70% must be North American melted/poured.
• Core parts: Engines, transmissions, advanced batteries must originate in USMCA region.

Additional Fees

• Gas Guzzler Tax: On low-MPG cars (unrelated to origin).
• Merchandise Processing Fee (MPF): 0.3464% of value (min $29.66, max $575.35 per entry).
• Harbor Maintenance Fee: 0.125% if arriving by sea.

Bottom line: Nearly all Mexican-built cars sold in the U.S. (e.g., Chevrolet Blazer, Equinox; Ford Bronco Sport, Maverick; Toyota Tacoma; Honda HR-V; VW Jetta, Taos) qualify for 0% duty under USMCA. The 2.5% MFN rate applies only to non-compliant vehicles.