The US government has imposed tariffs of 25 percent for all imports from Mexico and Canada. The measure funded by Donald Trump threatens the free trading system that the three countries maintained for more than 30 years.
Even before confirming that the tariffs came into force on March 4, Marcelo Ebrard, head of the Mexican Ministry of Economic Affairs, warned there approximate costs Of 20.5 billion US dollars for around 89 million American families. He also warned of the possible inflationary effects on products such as computers, televisions, refrigerators, agricultural goods, auto parts and vehicles.
Mexico is an important trading partner for the United States. Between January and November 2024, the Mexican exports amounted to $ 466.6 billion, while American exports reached $ 309.4 billion.
In Mexico, these tariffs will influence the automotive and electronics industry in particular, which make up about 46 percent of Mexican exports with a total value of around 200 billion US dollars.
The automotive industry is at risk
The automotive industry has shown considerable regional integration as part of the USMCA agreement of the USA-Mexico Canada (USMCA). This agreement enables foreign companies that produce in Mexico or Canada and use materials from the region to export their products to low tax rates to the USA.
The Trump administration argues that this disease was exploited by China to help the auto industry. Mexico has become the third largest exporter of vehicles worldwide. Between 2022 and 2023, sales increased by 14.3 percent, according to the world trade organization and achieved a value of $ 188.9 million. Most of these units are sent to the United States, although the origin of many can be returned to China, which, according to the Ministry of Economic Affairs, has established itself as a Mexican automotive supplier in 2023.
Mexico’s national auto parts warned that the introduction of tariffs for Mexican imports weaken trade, reduce competitiveness in the region and impair economic stability. In an explanation, it emphasized that the automotive and auto part sector is a pillar of North American exports that can generate more than 11 million jobs in the USMCA countries in the USMCA countries. The association stipulates that as a result of the new taxes, the assembly in Mexico could reduce production by up to 1 million units this year that would affect the availability of products, the creation of jobs and the supply chain.
The main countries that produce automotive parts in Mexico are Mexico city, Chihuahua and Nuevo León. Experts say that the most affected companies would be assemblers of Japanese and European origin. Ebrard estimated that the new tax burden in the United States would affect 12 million households, with expenses in this area increasing up to 10.4 billion US dollars. As an example, he pointed out that 88 percent of the pickups sold in the USA come from Mexico and are put together by companies such as General Motors, Ford and Stellantis.
The Minister of Economics emphasized that the tariffs would represent the United States that shoot themselves into their foot because it would affect their own automotive companies that depend on the Mexican production to supply their domestic market.
Increase in electronic prices
The electronics and device sector will also be affected. In November 2024, Mexican exports of electrical and electronic devices reached 8.9 billion US dollars, 89 percent of which were intended for the United States. The production of these devices focuses on Baja California, Chihuahua and Nuevo León, where thousands of jobs and assembly systems could be at risk.
Trump’s tariffs will have a significant impact on US consumers. A SEC study estimates that the additional tax for 40 million families who buy computers would cost an additional 7.1 billion US dollars. It is also expected that around 32 million households would pay up to 2.4 million US dollars more when buying new monitors, and around 5 million families would take over an additional effort of $ 817 million when buying refrigerators.
