The US government has applied 25 percent tax rates for all imports from Mexico and Canada. The measure was motivated by Donald Trump to threaten the free trade system that the three countries have maintained for more than 30 years.
Even before confirming that the tax rate is valid on March 4, Marcelo Ebrard, head of the Mexican Economic Ministry (SE), warned that these taxes will represent one. The cost is close 20.5 billion dollars for about 89 million American families. He also warned that inflation effects may be available to products such as computers, televisions, refrigerators, agricultural goods, auto parts and vehicles.
Mexico is an important trading partner for the United States. From January to November 2024, Mexico's exports totaled $ 466.6 billion, while US exports reached $ 309.4 billion.
In Mexico, these ratios will especially affect automobile and electronic fields. The automotive and electronic industries account for about 46 percent of Mexico's sales, with an estimated $ 200 billion.
The automotive industry is at risk
The automotive industry has shown significant regional integration under the US-Mexico-Canada agreement (USMCA). This agreement allows foreign companies to produce in Mexico or Canada and use local -origin documents to export their products to the United States with low taxes.
The Trump administration argued that this condition was exploited by China to strengthen the automotive industry. Mexico has become the third largest car exporter worldwide. From 2022 to 2023, its sales increased by 14.33 % and reached $ 188.9 million, according to the World Trade Organization. Most of these units are transferred to the United States, although many people can be traced to China, which has become Mexico's main car supplier with exports of $ 4.6 billion by 2023, according to SE.
The Mexican National Auto Parts industry (INA) warned that the taxation of Mexican imports will weaken trade, reduce the competitiveness in the region and affect economic stability. In a statement, it emphasized that the field of auto and car spare parts is a pillar of North American exports, with the ability to create more than 11 million jobs in USMCA countries. The association believes that assemblers in Mexico can reduce output of up to one million units this year due to new taxes, which will affect the available product available, create jobs and supply chains.
The main states producing automobile parts in Mexico are Mexico City, Chihuahua and Nuevo Leon. Experts say that the most affected companies will be our assemblers, Japan and Europe. Ebrard has estimated that the new tax burden will affect 12 million households in the United States, with an increase in spending up to $ 10.4 billion in this area. For example, he pointed out that 88 percent of pickup trucks sold in the United States from Mexico and gathered by companies like General Motors, Ford and Stellantis.
The Minister of Economy emphasized that the tariffs will represent the United States to shoot themselves at his feet, as it will directly affect its own automobile companies, depending on Mexico production to provide their domestic market.
Electronic price is increasing
The electronics and equipment will also be affected. In November 2024, the export of Mexico's electrical and electricity equipment reached $ 8.9 billion, 88.8 % of which were predetermined to the United States. The production of these devices concentrated in Baja California, Chihuahua and Nuevo León, where thousands of jobs and assembly factories may be in danger.
Trump's tariffs will be important for US consumers. A SEC study estimates that additional tax will cost an additional $ 7.1 billion for 40 million families to buy computers. Similarly, about 32 million households are expected to pay an additional $ 2.4 million when buying a new screen, and about five million families will receive an additional $ 817 million when buying refrigerators.