By Kylie Madry
Mexico’s prime economic system officers on Tuesday downplayed considerations about commerce talks with Donald Trump’s administration, saying the potential impression on American firms might give the incoming U.S. president second ideas about levying huge tariffs.
Trump campaigned on a pledge to roll out a slew of tariffs, together with for companies that had moved operations to Mexico, in a bid to revive jobs within the U.S.
Economists have warned that such tariffs would quantity to a critical blow to Mexico’s export-dependent economic system and have warned of a lesser hit to the U.S. economic system.
“Mexico’s negotiation energy is related,” Mexico’s economic system minister, Marcelo Ebrard, mentioned at a press convention on Tuesday, pointing to the variety of multinational companies which have arrange store in his nation.
“Any motion that you just take to place in danger (the U.S.-Mexico commerce relationship) means 1000’s of firms” shall be impacted, Ebrard mentioned. “There’s hardly an vital U.S. firm that does not have cash right here.”
Ebrard advised final week that Mexico might roll out retaliatory measures of its personal.
He mentioned on Tuesday that his group has been getting ready to satisfy Trump officers forward of Trump’s January inauguration.
A evaluate of the commerce settlement between the 2 international locations and Canada can also be set for 2026. Trump led an overhaul of the settlement in his first time period.
Ebrard and different officers additionally downplayed U.S. considerations that China was utilizing Mexico as a again door to keep away from commerce limitations.
Ebrard claimed that simply 0.4% of Chinese language funding coming into North America goes to Mexico, with over two-thirds going to the U.S.
Mexico’s skill to herald document quantities of international direct funding in recent times – a part of a pattern often known as nearshoring, by which multinationals transfer operations nearer to their ultimate vacation spot – is a prime power, the officers mentioned.
Deputy Economic system Minister Luis Rosendo Gutierrez mentioned the overwhelming majority of buyers he not too long ago met with in New York nonetheless wished to put money into Mexico, even with considerations over current constitutional reforms.
Ebrard additionally mentioned that prime carmakers corresponding to Ford had no plans to maneuver manufacturing from Mexico.
Trump had floated each a 200% tariff on all autos imported from Mexico and a 200% tariff on China-related automakers that transfer manufacturing to Mexico.
As for billionaire Elon Musk’s Tesla, Ebrard mentioned, Mexico continues to be ready to listen to again on whether or not it’s going to proceed with a beforehand introduced multi-billion-dollar megafactory in northern Mexico.
Trump has tapped Musk, who was a significant supporter of his presidential marketing campaign, because the co-head of a brand new division aimed toward bettering authorities effectivity.
This text was produced by Reuters information company. It has not been edited by International South World.
