Mexico’s automotive sector, a global powerhouse, is grappling with potential disruptions due to escalating trade tensions between the United States and China. A critical concern is the reliance on Chinese-sourced components for digital dashboard touchscreens, essential for modern vehicles. As the US intensifies its tariff war with China, Mexico faces pressure to align with its northern neighbor, with Congress considering increased tariffs on Chinese imports. President Claudia Sheinbaum advocates for these measures to bolster domestic manufacturing, but the reality is stark: Mexico lacks the capacity to produce most electronic parts, particularly for advanced dashboard systems. China remains the primary supplier, and finding alternative sources would be time-consuming and costly, threatening Mexico’s export-driven economy. Industry leaders, including Germany-based Aumovio, have voiced concerns about the dependency on Chinese parts, emphasizing the significant investment and years required to establish alternative supply chains. The Mexico-China Chamber of Commerce warns that such tariffs could harm the auto industry, which has flourished under the USMCA trade agreement. Meanwhile, some domestic manufacturers, like Kold Roll, view the situation as an opportunity to expand their market share. Despite these challenges, Mexico solidified its position as the US’s largest trading partner in 2023, exporting over 80% of its goods northward, including nearly 3 million vehicles annually.