Tear Sheet: Nemak S.A.B. de C.V.

. On March 4, 2025, the U.S. implemented a 25% tariff on imports from Mexico and Canada. However, on the same day President Donald Trump announced a one-month postponement, especially for the auto industry. In our view, the auto sector has a highly integrated supply chain and U.S. original equipment manufacturers (OEMs) have leverage cost advantages from labor and their strategic location. Moreover, we believe Nemak?s bargaining power will allow it to pass through any potential increase in costs derived from tariffs, while also leaving it well positioned for capacity relocation if needed. The company has six plants in the U.S. with about 35% of its capacity open if needed. However, it would have indirect exposure to tariffs, which could

...March 21, 2025 (Editor's note: S&P Global Ratings believes there is a high degree of unpredictability around policy implementation by the U.S. administration and possible responses--specifically with regard to tariffs--and the potential effect on economies, supply chains, and credit conditions around the world. As a result, our baseline forecasts carry a significant amount of uncertainty. As situations evolve, we will gauge the macro and credit materiality of potential and actual policy shifts and reassess our guidance accordingly [see our research here: spglobal.com/ratings].) S&P Global Ratings considers Nemak to be well positioned amid potential tariffs. On March 4, 2025, the U.S. implemented a 25% tariff on imports from Mexico and Canada. However, on the same day President Donald Trump announced a one-month postponement, especially for the auto industry. In our view, the auto sector has a highly integrated supply chain and U.S. original equipment manufacturers (OEMs) have leverage cost...

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