India, Feb. 4 -- US President Donald Trump has a two-barrelled gun pointed straight towards southern neighbours Mexico and northern ally Canada with threats of a hike in tariffs on several items imported into the US. And the list is primarily highlighted by passenger vehicles with Mexico as one of the largest exporters of cars to the world's second-largest vehicle market.

In 2024, Mexico exported 28 lakh units of light vehicles to the US. This was around 80 per cent of all its vehicle exports in the year, and a record. Major carmakers like Honda, Nissan, Toyota, Stellantis, Volkswagen and even American auto giants like General Motors and Ford manufacture several models in Mexico and then export these to markets in the north. But why?

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