The United States government imposed a 25 percent tariff on all imports from Mexico and Canada. Donald Trump is threatening the free trade system that has been preserved by the three countries for more than 30 years.
Even before emphasizing that customs duties entered into force on March 4, Marcelo Eftrard, head of the Mexican Ministry of Economy, warned that these taxes represent The approximate cost From 20.5 billion dollars to about 89 million American families. He also warned of the potential effect of inflation on products such as computers, TVs, refrigerators, agricultural commodities, auto parts and vehicles.
Mexico is a major commercial partner for the United States. Between January and November 2024, the total of Mexican exports reached 466.6 billion dollars, while US exports amounted to 309.4 billion dollars.
In Mexico, this customs tariff will especially affect the auto and electronics industries, which represent about 46 percent of Mexican exports, with a combined value of about 200 billion dollars.
The auto industry is in danger
The auto industry showed great regional integration under the USMCA agreement. This agreement provides foreign companies that are produced in Mexico or Canada and the use of local source materials to export their products to the United States at low tax rates.
The Trump administration argues that this condition was exploited by China for the automotive industry. Mexico has become the third largest source of vehicles around the world. Between 2022 and 2023, its sales grew by 14.3 percent and reached $ 188.9 million, according to the World Trade Organization. Most of these units are shipped to the United States, although the origin of many can be tracked to China, which created itself as the main car resource in Mexico, where exports reach $ 4.6 billion in 2023, according to the Ministry of Economy.
The national auto parts industry in Mexico warned that imposing definitions on Mexican imports will weaken trade, reduce the competitiveness in the region, and affect economic stability. In a statement, he emphasized that the auto parts and auto parts sector is the North American export column, with the ability to generate more than 11 million jobs in USMCA countries. The association expects that the two compounds in Mexico can reduce production at the amount of up to one million units this year due to new taxes, which would affect the availability of the product, the creation of job opportunities and the supply chain.
The main countries that produce car parts in Mexico are Mexico City, Chihuwa, and Nuwevo Leon. Experts say that the most affected companies are our collections, Japanese and European. EBRARD estimated that the new tax burden will affect 12 million families in the United States, with an increase in spending up to $ 10.4 billion in this field. For example, he indicated that 88 percent of the captured capacities in the United States come from Mexico and are collected by companies such as General Motors, Ford and Stilllantis.
The Minister of Economy emphasized that the customs tariff will represent the United States, depicting itself in the foot, because it will directly affect its car companies, which depend on the Mexican production to provide its local market.
Electronics prices rise
The electronics and devices sector will also be affected. In November 2024, Mexican exports of electrical and electronic equipment amounted to $ 8.9 billion, 89 percent of which were directed to the United States. The production of these devices is concentrated in Baja California, Chihuahua and Nuevo León, where thousands of functions and assembly plants can be at risk.
Trump’s tariff will have significant effects on consumers. The SEC study estimates that the additional tax will cost an additional $ 7.1 billion for 40 million families to buy computers. Likewise, about 32 million families are expected to pay up to $ 2.4 million when purchasing new screens, and about 5 million families will bear additional expenses of $ 817 million when purchasing refrigerators.
