Mexico dodges the last American prices but feels a global economic uncertainty

By María Virza and Fabiola Sánchez

Mexico (AP) – Mexico celebrated Thursday after dodging the last cycle of white house prices targeting dozens of American trade partners around the world, but it was also quickly recalled that in a global economy, the effects of uncertainty cannot be fully avoided.

President Claudia Sheinbaum said the free trade agreement signed by Mexico, Canada and the United States in Trump’s first administration had protected Mexico.

Now, his government will focus on 25% of existing American rates on cars, imported steel and aluminum, while accelerating domestic production to protect jobs and reduce imports.

“During my last call with President Trump, I said that, in the case of reciprocal prices, I believe I understand that there would be no prices (on Mexico), because Mexico does not place rates in the United States,” said Sheinbaum.

The secretary of economy Marcelo Ebrard noted that despite the free trade agreements with the United States, many countries have been targeted by the prices that US President Donald Trump announced on Wednesday what he nicknamed “Liberation Day”. Trump has formulated prices as a way to reduce manufacturing jobs to the United States

Note that Mexico dodged the latest tariff cycle, Ebrard said that Mexican export bands, including agricultural products such as lawyers, clothing and electronics, will continue to enter the United States without import rights.

Sheinbaum, on the other hand, encouraged companies producing Mexico who had not exported under the free trade agreement for various reasons to take the necessary measures to qualify. She cited the example of major German auto producers.

The qualifications for the free trade agreement could involve anything from the paperwork to adjustments to the supply of a product.

Despite Trump’s latest prices that were not imposed in Mexico, the uncertainty they created and the interconnectivity of North American automotive supply chains meant that it was not long in for the effects to touch Mexico.

Stellantis, manufacturer of automotive brands, notably Dodge and Jeep, announced that it would arouse production in its assembly plant in Toluca west of Mexico City for the month of April while it estimates the impact of prices on its operations. A similar temporary production stop was planned for an assembly plant in Canada and some 900 workers had to be temporarily dismissed in several factories in the United States.

This uncertainty is one of the reasons why Sheinbaum pushes Mexico Plan, an initiative to promote and cultivate a more domestic production.

For example, she cited collaboration between her government, local universities and Mexican companies Megaflux and Dina to produce electric buses for public transport.

Ebrard recently said that buses represent not only a technological advance in Mexico, but also a “strategic decision” in favor of industrial sovereignty in Mexico.

In a Mexico Factory, the electric buses called Taruk – the runner in native Yaqui – are already in production. Megaflux general manager Roberto Gottfried said that the company hoped to deliver around 200 by the end of the year.

He noted that around 70% of the Taruk components are produced in Mexico, including its engine, but the lithium batteries that feed them come from China.

In a country where one in three people use public transport every day, the development of this sector at the national level is critical, said Gottfried.

Despite the global economic challenges presented by the uncertainty caused by prices, he said, the large internal market in Mexico gives the initiative a competitive advantage to develop and resist the storm.

Originally published: April 3, 2025 at 11:10 a.m.