The head of government of Mexico City, Claudia Sheinbaum, has announced that the country will seek new trade partners if tariffs remain in place, specifically mentioning Canada and other countries during her press conference on Wednesday, January 5. She asserted that Mexico is a strong country and will not allow submission in the case of the imposition of devastating tariffs on the automotive industry.
Regarding this matter, the leader has a call scheduled with U.S. President Donald Trump next Thursday, March 6, to address the issue. Additionally, she responded to statements made by the U.S. Secretary of Commerce about a possible relief on tariffs that could be announced that same afternoon.
According to sources close to the matter, the Trump administration is considering a one-month extension for tariffs on Mexico and Canada, especially for cars assembled in these countries, due to requests from the automotive industry. Trump officials met with leaders from Ford, General Motors, and Stellantis to discuss this issue, and another meeting is scheduled at the White House on Wednesday, March 5.
Automakers have expressed their opposition to Trump's tariffs, arguing that they could significantly raise vehicle prices and disrupt supply chains. The Secretary of Commerce has hinted that there could be exceptions to the initial tariffs and is expected to announce updates regarding this.
It has been mentioned that one reason for postponing the decision on tariffs is to give automakers time to plan for the possible relocation of investments and production to the United States, a key request from Trump. It is noteworthy that a new set of tariffs is planned for automobile imports starting April 2, which could create another complicated situation if an agreement on the matter is not reached in time. U.S. manufacturers have pushed for an exemption for vehicles made in North America that comply with the USMCA rules.
The CEO of Ford has shown strong opposition to the tariffs and emphasized the importance of announcing a strategic plan in anticipation of any eventuality.
