Mexico Thanks Donald Trump for Preferential Tariff Status

“There are no additional tariffs to Mexico and that is good for the country,” Sheinbaum stated during a Thursday morning press conference, bragging about her government’s relations with the Donald Trump administration.

Mexico’s economy minister Marcelo Ebrard welcomed the “preferential treatment” Mexico received following US President Donald Trump’s announcement of sweeping new global tariffs.

Donald Trump Unveils New Global Tariff Plan

On Wednesday, Donald Trump outlined new tariffs on most nations including a minimum 10% “baseline” tariff on imports. Neighboring countries Mexico and Canada, although still subject to previous tariffs, were exempt from the new reciprocal tariffs.

Mexico’s Diplomatic Strategy Credited

Mexican President Claudia Sheinbaum explained that this treatment is owing to Mexico’s good rapport with the US.

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

“President Sheinbaum’s strategy has worked. We (Mexico) have a preferential treatment,” Ebrard stated during the same press conference.

USMCA Exemptions and Early Tariff Threats

Not long after his swearing-in ceremony, Trump had declared that he would impose a 25% tariff on every import from Mexico and Canada. But later he agreed to suspend tariffs for products under the United States-Mexico-Canada Agreement (USMCA) on free trade.

The products exempted from the new tariffs under the United States-Mexico-Canada Agreement (USMCA) include a wide range of sectors vital to both economies. These include agriculture and food, electronic manufacturing, and electrical equipment. Additionally, chemicals, clothing and footwear, as well as medical devices and pharmaceuticals, are also covered under the exemption. Machinery and equipment round out the list, ensuring that key industries in cross-border trade remain protected under existing trade agreements.

Tariffs Remain on Non-Compliant Goods

On Wednesday, the White House indicated that this exemption and tariffs on non-USMCA compliant goods would remain in force until Trump concludes the fentanyl and illegal immigration issues have been resolved.
Mexico, however, is still subject to a separate 25% tariff on automobiles to be imported to the US. Sheinbaum indicated that Mexico continues to be in discussions with the US regarding the effect of US tariffs on the automotive sector.

Ebrard to Visit Washington for Further Talks

At the press conference, Ebrard pointed out that other nations with which the US has trade agreements were still exposed to the reciprocal tariffs. “The only (trade) agreement with 0% tariffs is the USMCA,” he said.

Sheinbaum announced that Ebrard will probably go to Washington next week to talk about the tariffs’ effects on non-USMCA compliant autos, steel and aluminium industries.

The auto sector is most crucial to Mexico as it represents 30% of Mexico’s imports to the US, Sheinbaum added.
The steel and aluminum industries represent “a little more than 2% of the country’s total exports,” according to Ebrard.

Next 40 Days Crucial for Negotiations

Mexico’s economy minister says the next 40 days will be seen as a negotiating period for Mexico to achieve the best possible trade conditions. “We estimate it will take around 40 days of negotiations. That’s the reality we’re in. We’re going to consolidate that (preferential) position,” Ebrard said.

Economic Boost Measures Announced

Sheinbaum also issued a batch of economic actions Thursday that she claimed will boost local production of steel and aluminum, cars, medicines, farming and other industries.

“We are going to strengthen and expand national manufacturing for the domestic vehicle market, strengthening innovation, research and development, as well as energy efficiency. We have already discussed the plan with the automotive industry,” she said.

Sheinbaum’s Calm Approach to Donald Trump Pays Off

The Mexican president has consistently bragged about maintaining a “cool head” strategy in dealings with the Trump administration. Sheinbaum who is 62 and a climate scientist-turned-past mayor of Mexico City, elected as the first female president of Mexico in October has been pragmatic and level-headed, at least in public, as Washington has issued repeated tariff threats.