The Mexican electronics and home appliances industry, being the fifth largest producer worldwide with an annual production of around 34.7 million units, is threatened by the 25 percent tariffs imposed on imports of Mexican products by Donald Trump. This sector is strategic for the country's economy, contributing to both exports and final prices in the United States.
In a recent interview, Carlos Hermosillo, a consumption analyst, mentioned that sales of durable goods could decrease by 4 percent in 2025, affected by inflation, the exchange rate, and price increases due to U.S. tariffs. This would generate an economic slowdown and negatively affect the growth of the Information Technology (IT) industry.
The most affected segments would be those aimed at lower-income consumers, such as Bodega Aurrerá, as these customers would have difficulties absorbing price increases. Companies like Whirlpool Corporation, Mabe, LG Electronics, Electrolux AB, and Grupo Bosch, which have production plants in Mexico, would be notably affected by this situation.
Despite a possible temporary increase in sales during the first half of the year, driven by speculative purchases in anticipation of future price adjustments, it is expected that reduced purchasing power and higher prices will negatively impact sales, production, and exports in the long run. Trade negotiations between Mexico and the United States will play a crucial role in mitigating the effects of the tariffs.
On the other hand, the computer industry in Mexico would also be affected by the tariffs, as the country is one of the main suppliers to the United States in this sector. A 25 percent tariff on computers made in Mexico would impact both employment and manufacturing in the country, as well as the wallets of at least 40 million Americans.
In summary, the imposed tariffs represent a significant challenge for both producers and consumers in Mexico, affecting exports, increasing production costs, and generating adjustments in supply chains. The uncertainty in the Mexican economic landscape is evident amid this situation.
