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Mexico and the US need cooperation, not tariffs, warns Coparmex

by admin_l6ma5gus
March 31, 2025
in Business
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Mexico and the US need cooperation, not tariffs, warns Coparmex
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The Patronal Confederation of the Mexican Republic (Coparmex) has warned that US tariffs to vehicles manufactured outside the United States will increase prices, reduce the competitiveness of the sector and put thousands of jobs at risk in the region. The union emphasizes that the Government of Mexico must act firmly to protect national interests, demand compliance with economic agreements and establish new commercial alliances.

With the argument of protecting the American industry, Donald Trump signed this week a decree that imposes a 25% tariff on passenger cars, light trucks and imported auto parts. “We are going to charge countries for doing business in our territory and taking our jobs and our wealth. We will start with a rate of 2.5%, which is the current one, and we will increase it to 25%,” said the president. The measure will enter into force on April 3.


American tariffs on cars hit the European automotive industry

Joint imports of cars from members of the European Union have a value close to 44,064 million dollars, a figure that would only be exceeded by Mexican exports.


The White House reported that, under the treaty between Mexico, the United States and Canada (T-MEC), cars manufactured in Mexico and Canada may certify their US content to access preferential treatment, which will allow me to allow it to be The 25% tariff only applies to components that are not of American origin. Meanwhile, auto parts that meet the criteria of the treaty will be exempt from the tax until the United States Department of Commerce establishes a mechanism to tax its non -American content.

Despite this concession, specialists warn that the economy could enter recession if 25% tariffs to imports from Mexico that do not comply with the T-MEC are maintained during the rest of the year, and if the same rate is applied to new vehicles, to cargo transport and auto parts outside the treaty provisions.

Coparmex foresees that the imposition of these tariffs will not only affect national exports, but will also raise costs for US consumers, which could reduce demand and destabilize the automotive sector.

“The uncertainty generated affects the confidence of investors and hinders economic growth in both countries. The automotive industry is a fundamental pillar of the Mexican economy and its competitiveness cannot be compromised by arbitrary decisions. It is necessary to implement a clear strategy that gives certainty to companies and guarantees conditions of fair competition,” said the business organization.

Mexico is the main car supplier for the United States and plays a key role in its supply chain. According to figures from the National Institute of Statistics and Geography (INEGI), in 2024 Mexican distributors exported approximately 3.5 million light cars, of which, of which, of which, of which 80% were sent to the US market.

The expected response from the Sheinbaum government

Coparmex also stressed that Mexican authorities must defend national interests with determination. “It is essential to demand compliance with the commitments acquired within the framework of the T-MEC and seek mechanisms to mitigate the effects derived from these tariffs. We cannot depend on the will of a single country to guarantee the growth of our economy. It is a priority diversify our exports to reduce vulnerability to protectionist measures“The organization said.

During her morning conference this Thursday, the president of Mexico, Claudia Sheinbaum, announced that her government works in a coordinated response to the new rates imposed on cars, steel and aluminum, as well as before the reciprocal tariffs that Donald Trump plans to establish.

“On April 3 we will present a comprehensive response on the measures that we will adopt in front of this situation. This does not imply closing the door to joint work with the United States. We will always protect Mexico, the jobs that our companies are already generated here,” said the president.

For his part, the head of the Ministry of Economy, Marcelo Ebrard, detailed three advances in the negotiations between the Mexican delegation and the US commercial authorities. First, he reiterated that assembled vehicles in Mexico will receive concessions in the tariff based on the percentage of American content they incorporate. In addition, he informed about the creation of a work table to protect the auto parts industry, considered key in the United States production chain. Finally, he confirmed an agreement to Avoid multiple imposition of tariffs on components that repeatedly cross the border during the manufacturing process.

Coparmex emphasized the need for a “firm and proactive foreign policy” to promote the stability and growth of the country. “The future of Mexico cannot be subject to unilateral decisions that threaten our economy,” the organization concluded.

#Mexico #cooperation #tariffs #warns #Coparmex

Tags: cooperationCoparmexMexicotariffswarns
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