Mexico’s President Claudia Sheinbaum has warned that the country will take countermeasures if the United States doesn’t provide tariff relief on steel and aluminum exports. The threat comes amid ongoing trade tensions between the two nations, with Mexico prioritizing job protection in the industry.
*Trade Relations Between the US and Mexico*
The US and Mexico have a significant trade relationship, with Mexico being one of the US’s top trading partners. In 2024, the total goods trade between the two countries was estimated at $839.9 billion. The US exported $334 billion worth of goods to Mexico, while Mexico exported $505.9 billion worth of goods to the US.
*Key Exports and Imports*
Some of the key exports from the US to Mexico include:
– *Electrical machinery*
– *Machinery*
– *Energy products*
– *Vehicles*
– *Plastics*
– *Agricultural products* such as corn, pork, dairy products, and soybeans
Meanwhile, Mexico’s leading exports to the US are:
– *Vehicles*
– *Machinery*
– *Electrical machinery*
– *Medical devices*
– *Agricultural products* like fresh vegetables, beer, distilled spirits, and fresh fruit
*USMCA and Trade Agreements*
The US, Mexico, and Canada are parties to the United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA) in 2020. The USMCA aims to support mutually beneficial trade, resulting in freer markets, fairer trade, and more robust economic growth in North America.
*Potential Countermeasures*
While specific countermeasures weren’t detailed, Mexico’s President emphasized the importance of protecting jobs in the steel and aluminum industries. Potential actions could include tariffs on US goods or restrictions on US companies operating in Mexico.
*Impact on Industries*
The steel and aluminum tariffs have significant implications for both countries’ industries. Mexico’s exports of steel and aluminum to the US are substantial, and any tariffs or restrictions could impact jobs and economic growth in both countries.
*Future Action
The situation is being closely watched, and further negotiations between the US and Mexico are expected. The outcome will likely have significant implications for trade relations between the two countries and the industries affected.
