In an effort to prevent a trade war sparked by US President Donald Trump’s decision to impose 25% tariffs on imports from Mexico and Canada, Mexican auto and agricultural manufacturers appealed for “dialogue” on Sunday.
In the meantime, Mexican President Claudia Sheinbaum stated that she was awaiting Trump’s answer to her request for negotiations and the creation of a working group on drug trafficking and migration.
By Monday, she promised, her government would outline its next course of action.
Trump’s measure, which he claims is intended to put pressure on the US’s closest neighbors—and partners in a trade agreement—to crack down on migration and drug trafficking, is predicted to have the most negative effects on the auto and agricultural sectors.
Canada and Mexico have both declared counter-tariffs. China is also the subject of fresh 10% tariffs imposed by the US on top of existing ones.
According to separate comments from Mexico’s National Auto Parts Industry (INA) and National Agricultural Council (CNA), the US tariffs, which are set to go into effect on Tuesday, will weaken North America’s “competitiveness,” endangering millions of jobs.
According to Capital Economics, the Mexican automobile sector shipped over $36 billion worth of goods to the US in 2023, or 5% of Mexico’s GDP, and is a symbol of the US-Mexico-Canada Agreement (USMCA), which was signed during Trump’s first term in office.
The automotive sector and auto-parts makers support some 11 million jobs in the three countries, according to the INA.
“Weakening this trade… will only reduce the region’s competitiveness and affect stability,” according to the union.
According to the INA, tariffs might raise the typical car’s price by $3,000, which would result in a one million unit decline in sales this year.
According to the organization, certain parts travel across international borders seven or eight times throughout the vehicle assembly process, which exacerbates the effects of tariffs.
Meanwhile, according to the CNA agricultural group, Mexico supplies half of the US’s consumption of berries, tomatoes, avocados, and chili peppers. Additionally, the nation exports more than $1.5 billion worth of pork and beef to the US.
It stated that it was putting aside previous disagreements with Sheinbaum and advocated for “unity and dialogue” in the face of US pressure.
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