by President of Mexico Claudia Sheinbaum hopes that Trump will respect existing free trade agreements.
In 2024, Mexico exported 3 million cars to the US with a total value of 100 billion dollars in auto parts.
The threat of widespread tariffs of 25% on goods from Mexico puts the country in a difficult situation.
Tariffs of 25%, which President Trump plans to impose against Mexico starting April 2nd, could lead to a recession in the southern US. The large sector of Mexico’s automobile and auto parts manufacturing is a significant reason for this, prompting President Claudia Sheinbaum to negotiate carefully with Trump rather than resort to counter tariffs as Canada did.
Mexico exported nearly 3 million cars to the United States last year and approximately 100 billion dollars worth of auto parts. The US is of immense importance to the Mexican economy, with exports across the border constituting 28% of the country’s annual gross domestic product. Fully aware that Mexico cannot respond to Trump in the same way as Canada did, Sheinbaum has chosen a non-confrontational approach to Trump.
During a morning press conference this month, Sheinbaum stated, “We will do what is best for Mexico and seek dialogue with the United States. Until now – and I must credit Trump for this – he has been very respectful.” She added, “We must wait for April 2nd to see what awaits Mexico.”
Although the leader of Mexico does not want to start a trade war with Trump, it is unclear how she can persuade him not to implement tariffs. Sheinbaum hopes that Trump will respect the existing United States-Mexico-Canada Agreement, which ensures free trade between the 3 countries and was signed during Trump’s first term.
According to the director of the US-Mexico Center at Rice University, Tony Payan, Sheinbaum has no choice but to be patient with Trump. Although she is obligated to enhance border security to reduce the smuggling of illegal fentanyl, Payan is not convinced that this is enough to win Trump over. As part of his “America First” policy, Trump wants to protect against their goods from Mexico to Canada.
“Trump is a bully,” said Payan. “If you don’t resist, he triumphs, and if you resist, he punishes you even more severely,” he said. “The Canadians chose to resist, and Mexico chose the path of retreat and satisfaction. And guess what, they have to face the same threat and are in the same position.”
