The US government applied a tariff of 25 percent on all imports from Mexico and Canada. The agent promoted by Donald Trump threatens the free trade system, which has been maintaining three countries for over 30 years.
Even before confirmation that the tariffs entered into force on March 4, Marcelo Ebrard, head of the Mexican Ministry of Economy (SE), warned that these taxes would represent approximate cost from $ 20.5 billion for about 89 million American families. He also warned about the possible inflation influence on products such as computers, televisions, refrigerators, agricultural goods, car parts and vehicles.
Mexico is a key trade partner of the United States. From January to November 2024, Mexican exports amounted to USD 466.6 billion, and American export reached USD 309.4 billion.
In Mexico, these rates will particularly affect the automotive and electronic sectors. The automotive and electronic industry constitute about 46 percent of Mexican sales, and the total value estimated at $ 200 billion.
The automotive industry is at risk
The automotive industry has shown significant regional integration under the United States agreement-Maxicology-Capade (DO USMCA). This agreement allows foreign companies that they produce in Mexico or Canada and exploit local materials to export their products to the United States at low tax rates.
The Trump administration argued that China had used this condition to strengthen their automotive industry. Mexico has become the third largest exporter of vehicles around the world. According to the World Trade Organization in 2022–2023, its sales increased by 14.33 percent and reached $ 188.9 million. Most of these units are sent to the United States, although the origin of many can be traced to China, which was as the main supplier of Mexico cars, and the export reached $ 4.6 billion in 2023, according to SE.
The Mexican national car parts industry (Ina) warned that the imposition of tariffs on Mexican imports will weaken trade, reduce competitiveness in the region and affect economic stability. In a statement, he emphasized that the car and car parts sector is a pillar of exports in North America, with the ability to generate over 11 million jobs in Usmca. The Association provides that ASEMBLERS in Mexico can reduce production by up to a million units this year due to modern taxes that would affect the availability of product, creating jobs and a supply chain.
Mexico, Chihuahua and Nuevo Leon are the main states producing automotive parts in Mexico. Experts say that the most affected companies would be asiblers of us, Japanese and European origin. Ebrard estimated that the modern tax burden would affect 12 million households in the United States, with an escalate in expenses by up to $ 10.4 billion in this area. As an example, he pointed out that 88 percent of pickups sold in the United States come from Mexico and is assembled by companies such as General Motors, Ford and Stellantis.
The Minister of Economy emphasized that the tariffs would represent the United States firing at the foot, because they would directly influence their own automotive companies that depend on Mexican production to provide the domestic market.
Electronic prices are rising
It will also affect the electronics and equipment sector. In November 2024, Mexican exports of electrical and electronic equipment reached $ 8.9 billion, of which 88.8 percent were intended for the United States. The production of these devices focuses on Baja California, Chihuahua and Nuevo León, where thousands of jobs and mounting plants can be at risk.
Trump’s tariffs will have significant consequences for American consumers. The SEC test estimates that an additional fee would cost an additional $ 7.1 billion for 40 million families buying computers. Similarly, it is expected that about $ 32 million will pay up to $ 2.4 million additional dollars when buying modern monitors, and about five million families receive an additional expenditure of $ 817 million when buying a fridge.