Mexico's car production fell 1.4% year-on-year to 344,940 units in August 2026, following a 2.2% decline in July. 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 (-99%), Nissan (-26%) and Ford Motor (-25.7%), as well as Stellantis (-3.8%) and Toyota (-3%). Meanwhile, production rose sharply for BMW Group by 359%.