Posted: Friday, April 4, 2025. 10:19 am CST.
By Zoila Palma: As the U.S. trade war intensifies, Mexico has managed to avoid the worst of the Trump administration’s latest tariff measures, at least for now.
While the U.S. imposed sweeping tariffs on multiple nations, both Mexico and Canada were spared, thanks to their participation in the North American trade agreement (USMCA).
However, the trade deal has been tested by Trump’s actions, including 25% tariffs on automotive imports, steel, and aluminum, LA Times reports.
Mexican President Claudia Sheinbaum expressed relief, acknowledging that Mexico has benefited from “preferential treatment” but remains cautious about the future. “Of course we would like to achieve a better situation,” Sheinbaum said.
However, the auto industry has felt the brunt of the uncertainty, with Stellantis halting production at some plants in Mexico and Canada due to tariff concerns.
Mexico’s economic minister, Marcelo Ebrard, emphasized the country’s efforts to address U.S. concerns, such as deploying troops to the border to control immigration and increasing efforts to combat fentanyl smuggling.
These actions have helped protect millions of jobs in agriculture and manufacturing, with Mexico’s $3-billion avocado industry remaining unaffected.
In contrast, Canadian Prime Minister Mark Carney retaliated against the 25% U.S. auto tariff by imposing a similar levy on U.S. vehicle imports. “We take these measures reluctantly,” Carney said, stressing that the impact on Canada would be minimal but aimed to send a strong message to the U.S.
Meanwhile, Sheinbaum’s calm approach to the situation has earned praise both domestically and internationally, as she has avoided escalating tensions with the U.S. While Mexico’s peso has remained stable, economic analysts warn that the situation remains uncertain. Despite the ongoing tensions, experts believe North America could emerge in a strong position, though the unpredictability of future U.S. actions makes the outlook unclear.
With trade between the U.S. and Mexico reaching nearly $840 billion last year, Mexico is especially vulnerable to Trump’s tariff policies. As automotive exports make up a significant portion of Mexico’s trade with the U.S., the 25% tariff on vehicles will have a considerable impact. Mexican officials are in ongoing negotiations to secure exemptions or reduced tariffs for the auto and steel sectors and to prevent further U.S. tariffs.
“We have a permanent dialogue with the United States,” Ebrard said, noting that this ongoing trade dispute is far from over.
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The post International News: Trade war escalates: Mexico stays calm as Canada retaliates appeared first on Belize News and Opinion on www.breakingbelizenews.com.
Posted: Friday, April 4, 2025. 10:19 am CST. By Zoila Palma: As the U.S. trade war intensifies, Mexico has managed to avoid the worst of the
The post International News: Trade war escalates: Mexico stays calm as Canada retaliates appeared first on Belize News and Opinion on www.breakingbelizenews.com.
