In response to the United States' threat to impose a 25 percent tariff on Mexican imports, Mexico plans to respond with similar measures specifically targeting the U.S. agricultural and food sector, according to an analysis by S&P Global Ratings. The agency notes that unlike Canada, which could impose generalized 25 percent tariffs, Mexico would choose a selective strategy, mainly focused on the agricultural sector.
According to the ratings agency's report, it is unlikely that Mexico will apply tariffs on U.S. manufactured imports, as most are intermediate goods that ultimately get exported to the U.S. The analysis reveals that Mexico would be the most affected by U.S. tariffs, with an economic impact 11 times greater than that which the U.S. would suffer from retaliatory measures. The most vulnerable sectors in Mexico would be the electrical equipment and automotive industries.
S&P Global Ratings highlights that Mexico mainly operates as an "assembly line" within North American supply chains, with foreign value-added participation in its exports approximately 17 percent higher than Canada's and 33 percent higher than the U.S.
On the other hand, analysts from HR Ratings warn that the imposition of tariffs by the United States could result in a significant decrease in Mexican exports, particularly hitting the manufacturing sector, especially the automotive industry, which accounts for approximately 35 percent of the country’s manufactured exports.
Surveys conducted by the AP-NORC Public Affairs Research Center and the Wall Street Journal reveal that a significant portion of respondents in the United States oppose the imposition of tariffs on imported goods. According to these surveys, the majority believes that tariffs would cause an increase in the prices of goods, which would negatively affect the economy. Even a survey by FOX News shows that a considerable percentage of respondents believe that imposing tariffs on imports would be harmful to the country's economy.
