President Claudia Sheinbaum of Mexico welcomed the exclusion of her country from the latest round of import tariffs imposed by Donald Trump on Thursday.
Sheinbaum, who leads one of the United States’ top trading partners, credited the positive diplomatic ties between her government and the US administration for Mexico’s exemption from the tariffs.
Speaking to reporters, Sheinbaum stated, “We were spared because of the good relationship our government has with the US administration.”
Mexico, a nation with deeply entrenched trade relations with the United States, had been under significant threat due to the tariffs, especially given their joint participation in the US-Mexico-Canada Agreement (USMCA). The US is the destination for more than 80 percent of Mexico’s exports, including approximately three million vehicles annually. Major international car manufacturers, such as Ford, General Motors, BMW, Volkswagen, and Toyota, have operations in Mexico, including vehicle assembly plants.
The tariffs, which involve a 25 percent duty on foreign-made cars and light trucks, came into effect on Thursday, with exemptions for USMCA-covered vehicles and components. Despite these tariffs, some manufacturers like Stellantis, which operates plants in Toluca and Saltillo, Mexico, announced they would pause production of vehicles, including Dodge and RAM trucks. Stellantis also stated it would close its Chrysler factory in Windsor, Canada.
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Marcelo Ebrard, Mexico's Economy Secretary, hailed the preservation of the USMCA as a “major achievement,” noting that the trade agreement remained intact despite the new tariff impositions. Ebrard confirmed that Mexico would continue to negotiate in the coming weeks to secure the "best conditions" for bilateral trade in key sectors such as automobiles, steel, and aluminium.
In response to the ongoing trade challenges, Sheinbaum expressed her hope to extend the coverage of the USMCA to encompass all of Mexico’s exports, as she sought to address the pressures created by Trump’s tariffs. Additionally, the Mexican government is preparing to present a comprehensive "Mexico Plan" to bolster the economy in response to the tariff pressures.
