Mexico's auto sector weakened further in July 2026, with car production falling 2.2% year-on-year to 302,673 units after a 1.9% decline in June, while exports dropped 9.7% to 261,534 units following a 9.2% fall the previous month. Manufacturers faced continued uncertainty from changing US trade policy after US President Trump, in his second term, imposed tariffs on multiple countries including Mexico. The Trump administration also decided not to renew the USMCA, though the trade pact will remain in force for another decade unless a member withdraws, with annual reviews that could still bring significant changes. The United States and Mexico are continuing bilateral trade negotiations. By manufacturer, production fell sharply at Mercedes, down 98%, Honda, down 26%, Stellantis, down 20.3%, and Nissan, down 18.9%, while export volumes dropped most at Mercedes, down 97.7%, followed by Nissan, down 75.6%, Mazda, down 35.4%, and Honda, down 21.3%.