As for Mexico, it is indeed very happy to have received such preferential treatment from its northern neighbor. This praise arrives as a rather surprising rejoinder to President Donald Trump’s announcement of large new tariffs. This recent expansion is in line with a larger strategy. This has definitely put Mexico in a good spot with their trading partners, especially in light of the most recent tariff impositions of steel and aluminum on various countries.
Just on Wednesday, Trump was in the news for announcing new tariffs. He announced that there will be a minimum “baseline” tariff of 10% on imports from most countries. Mexico and Canada are spared these new tit-for-tats. This exemption allows them to keep trading at a much higher level, free from the additional costs and responsibilities that other countries are enduring. Yet, parallel to USMCA, Mexico is still at the mercy of an existing 25% tariff on all cars Mexico exports to the United States.
Mexico has been very present in negotiations with the United States regarding the impact of these tariffs. They’re especially worried about how these tariffs are affecting the automobile industry. Mexico’s economic minister, Marcelo Ebrard, beamed as he highlighted the success of Mexico’s winning formula. He recorded how Mexico has been winning very good terms given the changing environment.
“President Sheinbaum’s strategy has worked. We (Mexico) have a preferential treatment.” – Marcelo Ebrard
Commenting on the situation, Mexico’s President Claudia Sheinbaum said, “All of us are aware of how important this preferential treatment is. She also pointed out that, in part, the good terms of the deal are due to Mexico’s rosy relationship with the U.S.
“There are no additional tariffs to Mexico and that is good for the country.” – Claudia Sheinbaum
The exemption from new tariffs on products under the auspices of the United States-Mexico-Canada Agreement (USMCA) further enhances Mexico’s advantageous position. This added benefit enhances Mexico’s competitiveness for market share. These exemptions and tariffs on non-USMCA compliant products will remain in place. What happens next They’ll stay put until Trump realizes that some of these pressing issues like fentanyl trafficking and illegal immigration have been addressed adequately.
As Mexico navigates these new trade policies, it remains committed to maintaining a constructive dialogue with U.S. officials to mitigate any adverse economic impacts. Harmonious joint operations proved to be an important ingredient in maintaining cordial bilateral cooperation that has ensured robust bilateral trade ties.
