In light of the tariffs imposed by U.S. President Donald Trump on all imports from Mexico, specialists have observed that the country benefits from the USMCA, making it an attractive place for foreign investment. Sergio Reséndez, director of Colliers Monterrey, noted that the tariffs create economic uncertainty and volatility in the exchange rate, weakening the peso against the dollar. However, Mexico is favored by lower tariffs and becomes a favorable destination for foreign investments.
In Reséndez's words: 'There is the issue of foreign companies wanting to come to Mexico, as when they conduct their analysis based on the much higher tariffs applied to other countries, such as China's over 100 percent, Mexico becomes attractive for investments because it was not so hit due to the USMCA.' The depreciation of the peso is positive for the export manufacturing sector, as its costs in dollars decrease, which can be beneficial when selling in that currency and manufacturing in pesos.
Additionally, Reséndez highlighted that companies establishing themselves in Mexico or Canada have the opportunity to expand their value chain in the region, comply with rules of origin, and avoid tariffs. Although there are specific tariffs, such as those on steel and aluminum, it is expected that investments in the sector will make Mexico more competitive and favor exports compared to other countries.
Jorge Moreno, economics professor at UANL, observes that Mexico, due to its preferential treatment under the USMCA, could see less impact from tariffs. Given this scenario, foreign investment might seek profitable destinations like Mexico, where profitability is relatively high. Moreno also emphasized the importance of diversifying markets and not solely depending on the United States.
Regarding the automotive sector and the 25 percent tariff, Reséndez mentioned that companies like Volvo and Lego need to strengthen their local value chain to meet USMCA export requirements. In conclusion, due to its participation in the USMCA and its trade agreements, Mexico is shaping up to be an attractive country for foreign investment, especially in a context of global economic uncertainty.
