Mexico Excluded from Trump’s Tariffs, Thanks to Good Relationship
Mexican President Welcomes Exclusion
Mexican President Claudia Sheinbaum on Thursday welcomed her country being excluded from the list of nations targeted in US President Donald Trump’s latest round of tariffs. Sheinbaum told reporters Mexico was spared thanks to her government’s “good relationship” with the US administration.
Mexico’s Vulnerability to Tariffs
Mexico’s economy is considered one of the most vulnerable to Trump’s tariffs due to its close trade relations with the United States and their joint membership of the US-Mexico-Canada Agreement (USMCA) on free trade. More than 80 percent of Mexican exports go to the United States, including around three million vehicles a year.
Vehicle Assembly Plants in Mexico
The Latin American nation is home to many foreign-owned vehicle assembly plants operated by companies including Ford, General Motors, BMW, Volkswagen, and Toyota. These plants are a significant contributor to Mexico’s economy and would be heavily impacted by tariffs.
Economy Secretary Marcelo Ebrard said Thursday the USMCA remained intact, which he described as a “major achievement.” He said Mexico would, in the next 40 days, seek “the best conditions” for bilateral trade in automobiles, steel, and aluminum.
Trump had previously threatened Mexico and Canada with 25 percent tariffs, accusing its neighbors of allowing trafficked drugs and undocumented migrants into the United States. Tariffs for Mexico have already entered into force for all products not covered under the USMCA.
Mexico is now focusing on negotiating better trade agreements with the US to mitigate the impact of tariffs. The country is seeking to maintain its position as a major trading partner with the US and to protect its economy from the effects of tariffs.
Conclusion
Mexico’s exclusion from Trump’s latest round of tariffs is a significant achievement for the country. The good relationship between the Mexican and US administrations has helped to avoid tariffs on Mexican goods. However, Mexico will need to continue to negotiate with the US to ensure that its trade agreements remain favorable and to protect its economy from the impact of tariffs.
FAQs
Q: Why was Mexico excluded from Trump’s latest round of tariffs?
A: Mexico was excluded from Trump’s latest round of tariffs due to its good relationship with the US administration.
Q: How vulnerable is Mexico’s economy to Trump’s tariffs?
A: Mexico’s economy is considered one of the most vulnerable to Trump’s tariffs due to its close trade relations with the US and its joint membership of the USMCA.
Q: What is the USMCA?
A: The USMCA is a free trade agreement between the US, Mexico, and Canada that aims to promote trade and economic cooperation between the three countries.
Q: What are the next steps for Mexico in terms of trade agreements with the US?
A: Mexico is seeking to negotiate better trade agreements with the US to mitigate the impact of tariffs and to maintain its position as a major trading partner with the US.