Mexican agricultural and auto-parts producers called for immediate discussions on Sunday. They hope to prevent a trade war after US President Donald Trump announced a 25% tariff on imports from Mexico and Canada.
Sheinbaum Awaits Trump’s Response
Meanwhile, Mexican President Claudia Sheinbaum said she was waiting for Trump’s reply to her proposal. She suggested forming a working group to address migration and drug trafficking. Additionally, she promised to outline Mexico’s next steps by Monday.
Industries Warn of Severe Consequences
Trump argued that the tariffs would push Mexico and Canada to act on migration and drug control. However, both countries responded by imposing counter-tariffs. Furthermore, the US added a new 10% tariff on Chinese imports, increasing global trade tensions.
Mexico’s National Auto Parts Industry (INA) and National Agricultural Council (CNA) raised serious concerns. They warned that the tariffs, set to take effect on Tuesday, could hurt North America’s economy and endanger millions of jobs.
Auto Industry Faces Major Setbacks
Notably, Mexico exported $36 billion in automotive goods to the US in 2023. This industry contributes 5% to Mexico’s GDP and supports 11 million jobs across North America.
“Weakening this trade… will only reduce the region’s competitiveness and affect stability,” the INA stated. Moreover, the group estimated that tariffs could increase car prices by $3,000, leading to a decline in sales by one million units this year. Since many auto parts cross borders multiple times during production, costs could rise even further.
Agriculture Sector Raises Concerns
Similarly, Mexico plays a vital role in US food supply. The country provides 50% of avocados, tomatoes, chili peppers, and berries consumed in the US. Additionally, Mexico exports over $1.5 billion in beef and pork to American markets.
In response, the CNA called for “unity and dialogue.” It also emphasized the need to set aside past disputes with Sheinbaum to focus on resisting US pressure.