By María Verza and Fabiola Sánchez
MEXICO CITY (AP) — Mexico celebrated on Thursday for dodging the latest tariffs from the White House targeting dozens of US trading partners around the world, but quickly reminded them that the global economy cannot completely avoid the effects of uncertainty.
President Claudia Sinbaum said that free trade agreements signed by Mexico, Canada and the United States during Trump’s first administration protected Mexico.
Now, her government is focusing on existing 25% US tariffs on imported cars, steel and aluminum, accelerating domestic production to protect jobs and reduce imports.
“In my last call with President Trump, I said that in the case of mutual tariffs, it’s my understanding that there will be no tariffs (on Mexico) because Mexico will not place tariffs on the US,” Sinbaum said.
Economic Secretary Marcelo Ebrard noted that despite having a free trade agreement with the US, many countries have been targeted by US President Donald Trump on Wednesday for what he called “Liberation Day.” Trump has framed tariffs as a way to bring manufacturing jobs back to the US
Employees work in Mexico City on Wednesday, April 2, 2025 at a factory that produces parts for large electric vehicles (AP Photo/Fernando Llano)
Workers will cut cables at a factory producing parts for large electric vehicles in Mexico City on Wednesday, April 2, 2025 (AP Photo/Fernando llano)
A bundle of copper cables sits on a plant producing parts for large electric vehicles in Mexico City on Wednesday, April 2, 2025 (AP Photo/Fernandolulano)
Wednesday, April 2, 2025, AP Photo/Fernando Llano on a plant that produces parts for large electric vehicles in Mexico City.
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Employees work in Mexico City on Wednesday, April 2, 2025 at a factory that produces parts for large electric vehicles (AP Photo/Fernando Llano)
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Noting that Mexico has dodged its latest tariffs, Ebrard said that Mexican export strips, including agricultural products such as avocados, clothing and electronics, will continue to enter the United States without import operations.
Meanwhile, Sheinbaum encouraged companies that produced in Mexico that were not exporting under the free trade agreement for a variety of reasons, and took the necessary steps to qualify. She cited major German car producers as examples.
Eligibility for a free trade agreement can include anything from doing paperwork to adjusting the procurement of products.
Despite Trump’s latest tariffs not being imposed on Mexico, the uncertainty they created and the interconnectivity of North American automotive equipment chains meant it didn’t take much time to touch Mexico.
Stellantis, the manufacturer of automotive brands, including Dodge and Jeep, announced in April that it would suspend production at its Toruca assembly plant in western Mexico City. A similar temporary production halt was scheduled at an assembly plant in Canada, with around 900 workers being temporarily fired at several U.S. factories.
That uncertainty is part of why Sheinbaum is pushing for Plan Mexico, an initiative to promote and nurture more domestic production.
As an example, she produced electric buses for public transport, citing a collaboration between the government, local universities and Mexican company Megaflux and Dina.
Ebrard recently said that the bus represents not only technological advances in Mexico, but also “strategic decisions” in favour of Mexican industrial sovereignty.
The Mexican City factory already produces electric buses called talc, a Yaki trail runner for indigenous peoples. Megaflux Director Roberto Gottfried said the company hopes to offer around 200 by the end of the year.
He said that around 70% of the talc components are produced in Mexico, including motors, but the lithium batteries powered by them are produced from China.
In a country where one in three people use public transport every day, it is important to develop the sector domestically, Gottfried said.
Despite the global economic challenges presented by the uncertainty caused by tariffs, Mexico’s large internal markets said it is giving the initiative a competitive advantage to develop and survive the storm.
Original issue: April 3, 2025, 2:10pm EDT
