US President Donald Trump announced that his government will impose a 25% tariff on all products imported from Mexico and Canada that enter the country starting February 1, in addition to creating an agency dedicated to raising funds for foreign trade with other nations.
Although he did not sign the executive order, the announcement generated fear in financial markets, particularly in Mexico, since the collection of tariffs could reduce the competitiveness of Mexican products.
Data from the Ministry of Economy indicate that Mexico sends almost 80% of its exports to its northern neighbor. The collection of taxes would cause Mexican products to be more expensive for American consumers, therefore, they would stop buying goods from our country at the same rate, thus slowing down our economy.
According to official data, Mexico’s main exports are automobiles, computers, crude oil, motor vehicles; parts and accessories, as well as delivery trucks.
Mexico is one of the largest exporters of vehicles and automotive components to the United States. The goods include assembled cars, engines, electrical systems, tires, and other essential parts.
Some experts point out that the tariffs Trump has in mind would affect the same North American companies that have plants in Mexico, such as General Motors and Ford, in addition to those of European and Japanese origin.
According to the Ministry of Economy, Mexico’s main sale to the United States in 2023 was Parts and Accessories for Motor Vehicles, worth 35,979 million dollars. The main origins of sales to the United States were Mexico City, Chihuahua, and Nuevo León.
Regarding agricultural, food, and beverage products, Mexico is the world’s leading exporter of beer, tomatoes, chili peppers, red fruits, avocado, tequila, and mezcal. Most of it is destined for the United States market.
Regarding electronic products and household appliances, our country has become an important manufacturing center, for that reason it exports televisions, cell phones, computers, and other electronic equipment.
Although Mexico has decided to show caution in the face of trade threats from its main trading partner, Canadian Prime Minister Justin Trudeau has announced that his government will respond “quickly” and “very forcefully” to the United States if the threat of a 25% tariff on Canadian imports is carried out.
Source: infobae
