MEXICO CITY — Mexico has avoided the worst of the Trump tariff onslaught.
At least for now.
That was the message of relief that Mexican officials were sending Thursday, a day after the Trump administration unveiled its much-anticipated “Liberation Day” tariff regimen, imposing import levies on scores of nations worldwide.
Spared in the latest round of duties were Mexico and Canada — Washington’s two largest trading partners — which are both signatories of the North American free-trade pact inked with the United States in 2020, during Trump’s initial term.
The tariff assault from Washington has chipped away at the three-nation trade deal, but much of it remains intact — with the notable exceptions of 25% tariffs that the While House has imposed on automotive imports, as well as on steel and aluminum.
“Until now, we have preferential treatment,” President Claudia Sheinbaum told reporters at her morning news conference. “Of course we would like to achieve a better situation.”
Sobering news came Thursday in an announcement from automaker Stellantis, whose brands include Jeep, Citroën and Ram. The company said that it was temporarily halting production at some plants in Mexico and Canada because of the tariff uncertainty.
Still, Marcelo Ebrard, Mexico’s economic minister, said Mexico’s actions helped address complaints and concerns aired by Trump, aiding Mexico’s standing in talks with Washington. Mexico deployed troops to the U.S.-Mexico border to control immigration and beefed up efforts to counter the production and smuggling of fentanyl, the synthetic opioid, while turning over dozens of wanted drug traffickers to the United States.
Such moves, Ebrard said, had helped preserve more than 10 million jobs in agriculture, manufacturing, textile production and other sectors. Mexico’s $3-billion-a-year avocado industry has been thus far unscathed.
The 25% U.S. tariff on imported autos went into effect on Thursday, immediately prompting Canadian Prime Minister Mark Carney to slap a 25% retaliatory levy on vehicles imported from the United States.
“We take these measures reluctantly,” Carney said. “And we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada.”
But Sheinbaum, who has championed a “cool headed” response to Trump’s provocations — and eschewed an “eye for an eye, tooth for a tooth” approach — refrained from imposing any additional duties on U.S. imports. Her subdued attitude was in character with the fine line she has walked throughout the tariff debate, trying to appease Trump without being seen as compromising Mexican sovereignty — a strategy that has generally won her praise abroad and at home.
To date, wrote columnist Mario Maldonado in the Mexican newspaper El Universal, Sheinbaum’s actions have been vindicated. “Nonetheless, this doesn’t do away with the profound blow to foreign investment following the U.S. government threats and the imminent economic slowdown — or crisis.”
Throughout the contentious tariff debate, the Mexican peso has remained relatively stable at about 20 pesos to $1, a fact that many view as a positive barometer of the government’s strategy.
“Mexico President Sheinbaum has been very smart in her negotiations, and she’s done a good job of not agitating President Trump,” said Mike O’Rourke, chief marketing strategist at Jones Trading, an investment group that analyzes global economic trends.
But, he added, the situation remains “fluid” and not predictable.
“North America could wind up in a good position here,” O’Rourke said. “But the problem is we don’t know … what’s going to be announced tomorrow or next week.”
Mexico is the United States’ largest trading partner. Last year, binational goods trade reached almost $840 billion. But the U.S. trade deficit with Mexico soared to almost $172 billion last year, a 12.7 % increase compared with 2023. Trump wants to bring down U.S. trade deficits globally.
Mexico, with its heavy dependence on cross-border trade — the U.S market accounts for more than 80% of its total exports — has long been viewed as the nation most vulnerable to Trump’s tariff agenda.
Vehicles and auto parts represent more than one-third of Mexican exports to the United States, generating about $180 billion in revenue last year. The 25% tariff will affect all such imports, though the Trump administration has said exceptions would be made for U.S.-made auto content exported back into the United States.
In ongoing talks, Mexican authorities are seeking to reduce the new tariffs on both the auto sector and steel and aluminum manufacturers — as well as head off any new duties that may be emanating from Washington.
“We have a permanent dialogue with the United States,” said Ebrard, who has been shuttling back and forth between the two nations to meet with U.S. officials. “This is just one chapter. It hasn’t ended yet.”
Staff writer Kate Linthicum and special correspondent Cecilia Sánchez Vidal contributed to this report.
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