Mexico urges US ‘consideration’ over new vehicle tariffs
Mexico City: Mexican President Claudia Sheinbaum said she hoped the United States would show “consideration” toward Mexico following the US decision to impose new tariffs on heavy vehicle imports.
“We are already in talks, hoping there will be consideration toward Mexico,” Sheinbaum said on Monday during her daily press conference, adding the tariffs could be problematic for both countries, Xinhua news agency reported.
US President Donald Trump on Thursday announced a slew of new tariffs, including a 25 per cent tariff on imported heavy vehicles starting October 1, as part of his policy to strengthen the domestic industry.
Sheinbaum noted that under the United States-Mexico-Canada Agreement on free trade, Mexico’s exports have grown in sectors not subject to tariffs, particularly those excluding finished vehicles, steel or copper, benefiting from the accord’s “zero-tariff” scheme.
“Trade ties with the United States continue to be very important and a very significant competitive advantage for Mexico,” said Sheinbaum.
Mexico has managed to avoid major repercussions from US tariff policies thus far, largely due to the US-Mexico-Canada (USMCA) trade pact. Sheinbaum hopes this trade relationship will continue to protect Mexico from harsh economic impacts.
About 85 per cent of Mexican exports meet the US-Mexico-Canada Agreement (USMCA) rules, protecting them from a 25 per cent fentanyl-related tariff. However, Trump said last month that tariffs will remain 50 per cent on Mexican steel, aluminium and copper, and 25 per cent on autos or goods that do not meet USMCA rules. He also announced that Mexico agreed to remove many of its non-tariff trade barriers.