Until the last minute, Isaac Presburger, like many other Mexican businessmen, still could not believe that President Trump would hold his promise to hit Mexico with prices. It didn’t matter that Mr. Trump announced that the same day, he would go ahead with the expected taxes.
“I am still incredulous,” said Prestburger, sales director at Preslow, a family clothing company in Mexico. “We now know that Trump puts you pressure for you to give him what he wants. We gave him everything and he did not drop his handle. »»
In response to Mr. Trump’s threat to impose 25% prices on Mexican products, Mexico has made a major effort: the leaders have agreed to send more than two dozen alleged cartel heads to be tried in the United States, a departure of the previous position of the government on the extradities.
President Claudia Sheinbaum sent thousands of troops from the National Guard to the State of Sinaloa, the hub for fentanyl traffic, where they seized large quantities of synthetic opioids and have erupted hundreds of laboratories. She sent thousands of others to the American border, contributing to a dive into the number of illegal passages.
Ms. Sheinbaum looked further than anyone who expected to show the Trump administration that her government was serious about the satisfaction of American demands, according to analysts.
And yet, despite everything, the prices struck after midnight on Tuesday.
This left people from the Mexican government, affairs and civil society in shock, but also feeling exasperated, even betrayed.
“We are categorical,” said Sheinbaum at a press conference on Tuesday morning, a few hours after Mr. Trump’s prices took vigor on his largest business partners, including Mexico and Canada. “There is no reason, justification or excuse which supports this decision which will affect our employees and our nations.”
She checked what she described as “important actions” of her government against organized crime, and noted a 50% drop in fentanyl crises between October and January at the American-Mexican border.
“We have worked and delivered results on security issues,” she said.
The prices represent not only a flaw in the fabric of two economies which have been deeply intertwined for decades, but a sudden departure of a relationship that had long been collaborative and what many in Mexico expect it to be held: a last minute offer.
Until the end of last week, a delegation from Mexico had frantically negotiated with Washington officials, and the leaders predicted confidence. Even the financial markets remained stable in Mexico.
The Mexican Minister of Economy, Marcelo Ebrard, poster Friday, on social networks, “Mexico and the United States have a big future to work together”, with three Emojis de Pouce. Business managers across the country shared the same optimism until Monday.
José de Jesús Rodríguez, president of the Mexico Chamber of Commerce, said that Mr. Trump’s decision had surprised him, in particular in the light of the American chief’s suggestion that he would not impose prices if Mexico produced results on migration and drug trafficking. The results he gave included a high -level arrest barrage and the transfer of the 29 drug owners accused that the United States government had long been looking for on its own soil.
But Trump, whose criticism of Mexico had focused on illegal fentanyl, moved its conditions on Monday, saying that Canada and Mexico were to move car factories and other manufacturing in the United States. “What they have to do is build their car factories, frankly, and other things in the United States, in which case they do not have a price,” he said.
“It’s extremely disappointing and frustrating,” said Rodríguez. “The United States has broken their words and dictates the future of our commercial relationship.”
“It’s time for us to turn to other regions,” he added.
Ms. Sheinbaum said she had a planned call with Trump for Thursday, and told journalists on Tuesday if the prices were in force thereafter, her government would go ahead with a number of countermeasures, including reprisal taxes, which would be announced on Sunday. Canada has also announced reciprocal prices.
“We don’t want to enter a trade war,” she said. “It only affects the people.”
The approval notes of Ms. Sheinbaum in Mexico has skyrocketed, many praising his cooled approach to manage Mr. Trump, who called her “wonderful woman”.
But the trade wars that are underway will not only test this relationship, but to what extent the government can isolate its economy and its population of chaos and pain.
Presburger, a sales director of Prestlow, said that he still hoped that the prices would not last more than a few days, or that Mr. Trump would change his mind. Otherwise, “it will be disastrous for Mexico.”
The United States bought more than three-quarters of Mexico exports, and prices will reach manufacturing, agriculture and other companies, immediately disturbing the supply chain and most likely increasing the cost of Mexican products sold in the United States.
A few hours before the entry into force of the prices, Manuel Sotelo, president of the association of transporters of Ciudad Juárez, said that uncertainty hovers on the many truck products in the United States.
He said that if prices applied to all Mexican products, they would affect everyone. But if they have also applied to raw materials from companies on the border, “then the situation will get worse for the region.”
He said the transport industry could not even last a week if the trade was frozen.
When Mr. Trump struck Mexico with prices during his first mandate, he made a surgical response, targeting reprisal prices for products produced in the republican states considered to be part of the Trump base – like Kentucky Bourbon.
The prices were raised after about a year.
The preparation of the worst, the owners of Mexican companies and the commercial groups were already beginning to rush.
Antonio Lancaster, President of the Council of Industrial Chambers of the State of Jalisco, one of the largest exporters of food and drinks – including Tequila – in the United States, said that room managers were already in talks with the state and the federal government of the plans to strengthen local production and continue other export markets.
“We have seen it happening, and that means that we will continue to rearrange our exports,” said Lancaster. He added: “We will end up exporting to Europe, Asia or elsewhere.”
Businessmen like Mr. Lancaster argued that prices will eventually injure American consumers as well as Mexican producers.
“We all lose here,” he said.
Jesús Manuel Salayandía, coordinator of a business group on the border, said that business leaders, mainly based in the United States, gathered to plan their response to prices.
“They analyze if they will move to Central America, in the southern part of the country, if they will return to the United States or whether they will automate or robot certain production lines,” he said. “All this is considered.”
Mr. Salayandía said the Mexican government, perhaps pending a last-minute agreement, had not worked to prepare.
They had thought, “Let’s wait for Trump to tell us what will happen,” he said. “But they do not work on a plan to strengthen the domestic market or to offer incentives to companies already here.”
Marcelo Vázquez, state delegate of the National Association of importers and exporters of the Mexican Republic of Chihuahua, said that in recent weeks had workers in practically 24 hours a day to export goods to the United States before the entry into force of the prices.
“But it’s just aspirin for headache; It doesn’t really solve the problem. »»
Rocío Gallegos Ciudad Juárez, Mexico.
