Mexico City, Mexico — President Claudia Sheinbaum announced that after April 2, Mexico will provide a comprehensive response to the United States. The response will be regarding President Donald Trump’s decision to impose reciprocal tariffs on all countries around the world, as well as on steel, aluminum and automobile imports.
She emphasized that her government’s responsibility is to protect the Mexican people, jobs, and businesses.
“The first thing the Mexican people need to know is that we will always protect Mexico, that is our responsibility. We have to defend the jobs created in Mexico, the jobs that exist and Mexican companies as well.
“That is part of our fundamental work in the development of the country and in our relationship with the United States government, always upholding the principle of our country’s sovereignty, of defending our country’s sovereignty,” she said.
Sheinbaum explained that the executive order signed by President Trump March 26 regarding tariffs on auto parts and automobiles contains two clauses. The clauses establish that parts originating from countries that are party to the United States-Mexico-Canada Agreement (USMCA) will be tariff-free on automobile imports.
“There are two special clauses for countries that are part of the United States-Mexico-Canada Trade Agreement: ‘Automobile importers, under the United States-Mexico-Canada Agreement, will be given the opportunity to certify their U.S. content, and systems will be implemented so that the 25 percent tariff only applies to the value of their non-U.S. content.’
“Then there’s another element, right here, that says: ‘Auto parts that comply with the USMCA will remain duty-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection (CBP), establishes a process for applying tariffs to their non-U.S. content,’” she read.
She explained that both countries have a strong integration in the automotive industry, which is why the possibility of a Preference System for Mexico is being discussed during the discussions with the U.S. government, so that all suppliers in Mexico would receive some type of discount on tariffs.
“Now, we always negotiate with one premise. The interest of the people and the interest of the nation, and seeking the best conditions for the people of Mexico and for the nation. And it’s with that perspective that Marcelo (Ebrard, Secretary of Economy) and the Secretary of Commerce are working on,
“The talks are still ongoing and we’ll wait until April 2nd to see how everything turns out and from there, we’ll also decide on the measures we’re going to take, because we have to take measures for the interest of the people of Mexico and the interest of the nation, in the best possible relationship with the United States,” Sheinbaum explained.
she emphasized that Mexico is the only country that maintains a high level of communication with the United States government, particularly with Secretary of Commerce Howard Lutnick.
She reported that, in light of the US tariffs on the automotive industry, she will meet with global leaders of this sector in Mexico, particularly with companies primarily with U.S. capital, to discuss ongoing negotiations. He also stated that the goal of Plan Mexico is for what is manufactured in Mexico to be sold in Mexico.
“That’s why I say the answer after April 2nd is not only how we respond to the United States, which is important, but how we consolidate Plan Mexico, which will allow us to grow, create jobs, and distribute wealth, which is one of the goals for reducing poverty,” she added.
Through a link from Washington, D.C. to the National Palace, Economy Secretary Marcelo Ebrard Casaubon explained that Mexico exports nearly 3 million vehicles to the United States, while 40 percent of the auto parts consumed in the U.S. are imported from Mexico, the vast majority of components in automobiles manufactured in Mexico are of U.S. origin.
Therefore, during talks with U.S. Secretary of Commerce Howard Lutnick, discussions have begun about creating a Preference System for Mexico so that domestic suppliers can receive a discount on the tariffs imposed.
“What we’re seeking is for products made in Mexico to ultimately have the best price than any other country such as Germany, Japan, South Korea, or any other country that also exports to the United States. That’s the system of preferences the President’s Office has asked us to organize,” she explained.
Furthermore, the goal is to ensure that parts that cross borders repeatedly do not have to pay these types of tariffs. He noted that, in the automotive industry between the United States, Canada, and Mexico, a component such as a piston crosses borders up to seven times during the manufacturing process of a car, so the implementation of tariffs would increase the price of manufactured goods.
“So, this has also been clearly established that it is not going to happen,” she added.
He reported that during his meetings with Commerce Secretary Howard Lutnick, the deal has been very good and that the arguments Mexico has presented in recent weeks have been understood.
