French car parts supplier Valeo said 90% of the products produced by the group in Mexico and imported into the U.S. are now compliant with the United States-Mexico-Canada-Agreement (USMCA).

"Valeo has implemented measures to mitigate the direct impact of tariffs, conducting an exhaustive review of its supply chain in order to do everything it can to reduce the basis for the new tariffs", it said.

CEO Christophe Perillat said in call with journalists the company was moving plastic moulds - used to produce car parts - from China to other parts of the world, particularly Mexico or the U.S., to be USMCA compliant.

The group added it was seeking agreements to obtain full compensation from customers for tariffs, and had signed deals covering more than 75% of the amounts concerned.

Valeo also reported a 2.1% drop in its first-quarter sales to 5.31 billion euros ($6.05 billion), in line with the company-provided consensus.

($1 = 0.8772 euros)