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Mexico is a major producer of wire harnesses, but recent U.S. economic policies and Mexico’s domestic issues have had a ripple effect on the industry. Jesus Duarte, vice president of Mexico Assembly Wire Technology and president of Expo Wire Tech, explains the issue in greater depth and how the wire harness industry should respond on its own, rather than just reflect what Tier 1s are doing.
Nolan Johnson: Jesus, would you provide an overview of the wire harness industry in Mexico?
Jesus Duarte: The wire harness industry in Mexico is struggling because of all the situations we're facing. It's not only tariffs, but it is also the internal situation in Mexico. Everything manufactured in Canada, the U.S., and Mexico doesn’t incur any tariffs. But a wire harness can include more than 5 kilometers of wire and more than 1,000 sensors, including cameras, impact, heat, proximity, and more. Most of these sensors and cameras are not manufactured here; they're manufactured in Taiwan, China, and Europe.
Johnson: So, they become subject to tariffs?
Duarte: Exactly. Some of it comes from the United States, but a lot of it comes from China.
Johnson: That certainly changes the dynamics of quoting, pricing, and working with the customers. Is Mexico still seeing strong demand for wire harnesses?
Duarte: Another situation we’re facing is that the production of automobiles is going down. If automotive production is down, then the manufacture of wire harnesses is as well.
Mexico is still a good target for wire harnesses, because the process is very manual. The OEMs are trying to design the wire harness to be more automated, but we cannot control that right now.
Johnson: Normally, that would be an opportunity to create a more varied portfolio of businesses, but you can't do that very well, given the tariffs and domestic events.
Duarte: Exactly. Since the OEMs are not producing enough cars, especially electric cars, which is soft right now, many are moving back to hybrid or regular cars.
Continue reading this article in the April 2026 issue of SMT007 Magazine.
