Washington: The United States is considering granting Mexico a discount on the recently announced 25 percent tariff on medium- and heavy-duty vehicles, Mexican Economy Minister Marcelo Ebrard said Friday. Ebrard stated that the mechanism would be similar to the one applied to light vehicles, which has benefited Mexico due to the high level of component integration between the two countries in vehicle production.

According to Namibia Press Agency, the U.S. government has communicated that there will be a discount process, which is expected to significantly benefit companies operating in Mexico. U.S. President Donald Trump announced earlier this week a 25 percent tariff on all imported medium and heavy trucks starting Nov. 1. This follows a similar 25 percent tariff on light vehicles that has been in effect since April under a presidential executive order.

Though cars made in Mexico and Canada are technically subject to the tax, automakers that comply with the North American Free Trade Agreement's content requirements can deduct the value of U.S.-made parts.