The Treaty between Mexico, the United States, and Canada (USMCA) has lost its preferential tariff treatment, as the U.S. administration decided to impose tariffs on imports of Mexican and Canadian products. This protectionist measure implemented by the Trump administration has generated uncertainty about economic integration in North America for the first time in more than 30 years.
On March 4, the Trump administration imposed a 25 percent tariff on most U.S. imports from Mexico and Canada, a 10 percent tariff on Canadian energy, and an additional 10 percent on Chinese imports. For a month, the threat of imposing tariffs on Mexican exports to the U.S., which are the highest to that market, was maintained, related to immigration and national security issues.
Donald Trump ultimately imposed tariffs with the aim of launching a campaign against the global economic system, which he considers biased against the United States. The measure is perceived as a display of economic strength by Trump, who has repeatedly expressed his intention to balance trade relations through tariffs.
The automotive industry has been especially affected, with companies like Ford, Stellantis, and General Motors expressing concern about the Trump administration's policies. For its part, Nissan has contemplated the possibility of moving its production from Mexico to the United States.
In response to the tariffs imposed by the United States, Mexico has announced that it will take tariff measures and possibly legal actions, which will be detailed in the Zócalo of Mexico City. President Claudia Sheinbaum has rejected an offensive statement issued by the White House and announced a response from Mexico.
China has imposed tariffs on some U.S. exports in retaliation, while Canada has applied a 25 percent tariff on imports from the United States. The incalculable costs that would arise from reversing decades of economic integration in North America through the application of tariffs represent a significant drawback of Trump’s "America First" trade policy.
Although Mexico can defend its trade interests by adopting retaliatory measures, moderate economic growth is expected for the remainder of the year. Some analysts foresee a stagnation scenario, while the more pessimistic ones are more likely predicting a recession in the Mexican economy.
