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Mexico is in the middle of a ‘dance of tariffs’ between the United States and China, the two largest economies on the planet, due to the announcement of new tariffs on Asian steel and aluminum.
The Joe Biden government believes that Xi Jinping and Chinese companies use unfair practices to export their overproduction of steel to other countries at very low prices.
But what does Mexico have to do with this mess? According to Washington, China uses our country to export steel and aluminum to the US, materials that arrive without paying tariffs thanks to the T-MEC.
Therefore, the US announced that it will apply 25 percent tariffs to shipments of steel and aluminum diverted through Mexico by China, which, they accuse, is trying to avoid existing taxes through so-called transshipment.
The measure applies to steel that was not melted and was poured into Mexico, the US or Canada, as explained by the director of the White House National Economic Council, Lael Brainard.
What does Mexico buy from China?
And in the midst of this trade dilemma, the question arises, what do we buy the most from China? Figures from the Bank of Mexico (Banxico) indicate that in the first three months of 2024, Mexico has maintained an intense commercial relationship with the Asian country characterized by a notable imbalance in the trade balance.
Banxico figures reveal that while imports of Chinese products reached the figure of 30 thousand 24 million dollars, Mexican exports to the Asian giant barely amounted to 2 thousand 185 million dollars. This scenario results in a trade deficit of 27 thousand 839 million dollars.
This is the top 5 of the products that Mexico buys from China:
Mobile phones: Leading the list, these devices represented imports of 2 thousand 56 million dollars in the first quarter. The constant demand for communication technology in Mexico reflects both the dynamism of the internal market and the dependence on Chinese production in this sector.
Automobiles and other vehicles: With imports amounting to 1,393 million dollars, this category underlines the growing presence of Chinese vehicles in the Mexican market.
Vehicle parts and accessories: Closely related to the previous point, this segment reached 1,088 million dollars in imports. These figures reflect the integration of Chinese components in the supply chain of the Mexican automotive industry.
Power transformers and static converters: With a value of 886 million dollars, these imports are crucial for the electrical and electronic infrastructure, covering everything from industrial applications to domestic consumption.
Fixed electrical capacitors: These essential components for the electronics industry represented imports for 785 million dollars, revealing Mexico’s dependence on Chinese technology for its manufacturing sector.
Source: elfinanciero
