Mexico welcomes US tariff exemptions amid global trade shake-up

On Wednesday, Trump introduced a series of tariffs affecting multiple countries, including a minimum 10% baseline tariff on imports.

Despite the sweeping measures, neighboring Mexico and Canada remained exempt from the new reciprocal tariffs, continuing the status quo from previous agreements.

Mexican President Claudia Sheinbaum credited this outcome to Mexico's positive diplomatic relations with the US.

"There are no additional tariffs to Mexico and that is good for the country," Sheinbaum stated during a Thursday morning press conference.

"This has to do with the good relationship we have constructed with the US government, based on collaboration but with respect," she added.

Economic minister Marcelo Ebrard reinforced the sentiment, noting, "President Sheinbaum’s strategy has worked. We (Mexico) have a preferential treatment."

Ebrard highlighted that while other countries with trade agreements with the US face new reciprocal tariffs, the United States-Mexico-Canada Agreement (USMCA) remains the only trade deal exempt from such measures.

Challenges for the automotive sector

Despite the exemptions, Mexico continues to face a 25% tariff on cars imported to the US.

Sheinbaum acknowledged the challenge and stated that Mexico remains in talks with the US to address the impact on the automotive industry, which accounts for 30% of Mexico's exports to the US.

Meanwhile, Ebrard plans to travel to Washington to discuss the ongoing issues related to non-USMCA-compliant automotive, steel, and aluminum sectors.

Looking ahead, Ebrard anticipates a 40-day negotiation period to secure the best possible trade conditions for Mexico.

In response to the tariffs, Sheinbaum also announced measures to bolster domestic production in key industries, including steel, aluminum, automobiles, and pharmaceuticals.

Mexico's government remains optimistic about maintaining its favorable trade status while continuing negotiations to protect the automotive sector.