Dr. Daniel Tschofen Consulting Services
Advisory Services for the Automotive Industry in Response to the 2025 U.S. Import Tariffs
Mexico Consulting

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Tariffs

Advisory Services for the Automotive Industry in Response to the 2025 U.S. Import Tariffs

Turning Tariff Challenges Into Strategic Advantages

 

On March 26, 2025, the U.S. government imposed a 25% tariff on imported automobiles and key automotive parts under Section 232 of the Trade Expansion Act. This decision significantly impacts global supply chains—particularly for companies with manufacturing operations in Mexico or supply routes through North America.

We help automotive manufacturers, suppliers, and investors proactively respond to the new trade landscape—and turn disruption into opportunity.

Is Your Automotive Business Ready for the 25% Tariff?

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Specialized Consulting Services for the Automotive Sector

1. USMCA Certification & Tariff Mitigation Strategy

Reduce Your Exposure to the 25% Tariff

The White House has allowed for tariff exemptions on the U.S. content of imports under the USMCA. We support clients in:

  • Auditing and certifying U.S. content within Mexican and Canadian operations

  • Implementing traceability systems and documentation for compliance

  • Structuring production workflows to maximize domestic value content

  • Engaging with CBP and the U.S. Department of Commerce during rollout

Why it matters: Proper documentation and structuring can significantly reduce tariff liability, especially for complex supply chains with mixed origin parts.

2. Mexico Supply Chain Optimization

Realign Production to Reduce Tariff Impact

Mexico remains central to automotive production, but now more than ever, where and how production happens matters.

  • Reassess supplier locations and relocate value-added steps to increase U.S.-qualifying content

  • Transition final assembly or subassembly processes to maximize tariff exemptions

  • Nearshore or reshuffle suppliers to limit dependence on high-tariff exposure regions

  • Use Mexico as a value-add platform to enhance regional compliance

3. Manufacturing Cost Modeling & Tariff Impact Forecasting

Model Scenarios. Protect Margins. Plan Confidently.

We simulate how the 25% tariff affects your unit economics, sourcing strategy, and pricing models, including:

  • Forecasting impact on margins by product line

  • Identifying which components face the highest duty exposure

  • Modeling “restructure scenarios” to realign sourcing, production, and logistics

  • ROI evaluation of localizing production vs. paying tariffs

4. Legal & Customs Compliance for Tariff Readiness

Avoid Fines. Maintain Flow. Stay Compliant.

With enforcement ramping up and processes still evolving, compliance risk is real. We help you:

  • Review and align customs declarations and harmonized system (HS) codes

  • Develop documentation protocols for value origin audits

  • Coordinate with Mexican customs brokers and U.S. CBP liaisons

  • Prepare for implementation of non-U.S. content tracking systems

5. Strategic Restructuring & Footprint Planning

Design a Post-Tariff Operating Model

We work with corporate leadership to develop long-term restructuring plans:

  • Realign North American manufacturing footprints

  • Evaluate joint ventures, contract manufacturing, or maquila setups in Mexico

  • Develop multi-country risk mitigation strategies

  • Align tax, legal, and operational frameworks with future tariff dynamics

Who Should Work With Us?

  • OEMs operating in or sourcing from Mexico

  • Tier 1 & Tier 2 Suppliers impacted by cross-border movement of components

  • Logistics Providers facing new compliance and documentation needs

  • Private Equity & Investment Funds with exposure to automotive manufacturing

  • U.S. and EU-based automotive brands evaluating Mexico as a platform for North America

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