The US government has imposed 25% tariffs on all imports in Mexico and Canada. The measure promoted by Donald Trump threatens the free trade system that the three countries have maintained for over 30 years.
Even before the confirmation that the prices entered into force on March 4, Marcelo Ebrard, head of the Mexican Ministry of the Economy (SE), warned that these taxes would represent a approximate cost $ 20.5 billion for around 89 million US families. He also warned of the possible inflationary impact on products such as computers, televisions, refrigerators, agricultural products, automotive parts and vehicles.
Mexico is a key business partner for the United States. Between January and November 2024, Mexican exports totaled $ 466.6 billion, while US exports reached $ 309.4 billion.
In Mexico, these rates will particularly affect the automotive and electronic sectors. Automobile and electronic industries represent approximately 46% of Mexican sales, with an estimated combined value at $ 200 billion.
The automotive industry is in danger
The automotive industry has shown significant regional integration within the framework of the United States-Mexico-Canada (USMCA) agreement. This agreement allows foreign companies that produce in Mexico or Canada and use local materials to export their products to the United States at low tax rates.
The Trump administration argued that this condition was operated by China to strengthen its automotive industry. Mexico has become the third exporter of vehicles around the world. Between 2022 and 2023, its sales increased by 14.33% and reached a value of $ 188.9 million, according to the World Trade Organization. Most of these units are dispatched to the United States, although the origin of many can be traced in China, which has established itself as the main car supplier in Mexico with exports reaching $ 4.6 billion in 2023, according to the SE.
The National Industry of Automobiles (INA) of Mexico warned that the taxation of Mexican import prices will weaken trade, reduce competitiveness in the region and will affect economic stability. In a statement, he stressed that the automotive and automotive parts sector is a pillar of North American exports, with the ability to generate more than 11 million jobs in USMCA countries. The association provides that assemblers in Mexico could reduce production up to a million units this year due to new taxes, which would affect the availability of products, job creation and supply chain.
The main states producing car parts in Mexico are Mexico, Chihuahua and Nuevo Leon. Experts say that the most affected companies would be assemblers of American, Japanese and European origin. Ebrard estimated that the new tax burden would affect 12 million households in the United States, with an increase in spending up to $ 10.4 billion in this region. For example, he stressed that 88% of the microphones sold in the United States come from Mexico and are assembled by companies such as General Motors, Ford and Stellantis.
The Minister of the Economy stressed that the prices would represent the United States which stands in the foot, because it would have a direct impact on its own automobile companies, which depend on Mexican production to provide their domestic market.
The prices of upward electronics
The electronics and devices will also be affected. In November 2024, Mexican exports of electrical and electronic equipment reached $ 8.9 billion, of which 88.8% were intended for the United States. The production of these devices is concentrated in Baja California, Chihuahua and Nuevo León, where thousands of jobs and assembly factories could be in danger.
Trump prices will have significant implications for American consumers. A SEC study estimates that the additional direct debit would cost an additional $ 7.1 billion for 40 million families buying computers. Similarly, it is expected that around 32 million households would pay up to an additional $ 2.4 million when purchasing new monitors, and around five million families would pay an additional expenditure of $ 817 million when purchasing refrigerators.
