The minister added: “The tension in economic relations with China will occupy a central place in the US strategy.” “We are well aware that the United States is our main economic partner… We will try to some extent to mitigate the upcoming conflict and competition between Washington and Beijing.”
Speaking about the economic relations between the American side and his country, the Mexican minister pointed out that it has now become one of the main exporters to the United States, and expressed his confidence that by Trump’s second presidential term, Mexico will be in a better position to renegotiate the free trade agreement than it was during His first presidential term 2017-2021.
“The current starting point is much better than it was six years ago,” he said.
When Trump was still a presidential candidate for the Republican Party, he said that, if elected, he intended to increase tariffs on products coming from China and other countries.
It is noteworthy that the first period of Trump’s presidency witnessed “trade wars” between the United States and China. In practice, Trump’s successor, current President Joe Biden, has continued this economic confrontation: threats have been issued to increase tariffs on imports of Chinese steel, aluminum, and electric cars.
Earlier, calculations conducted by RIA Novosti confirmed that the main exporter of goods to the United States in the first eight months of 2024 was Mexico worth $335 billion, followed by China ($279 billion) and Canada ($275 billion). At the end of this year, Mexico will maintain its leadership in this area, with a supply volume of $496 billion. China comes in second place with a value of $431 billion.
In July, the White House announced that when importing from Mexico and in order to enter the US market duty-free under the US-Canada-Mexico Free Trade Agreement, stainless steel products as well as aluminum must be of Mexican origin, but if the metals used come from outside Mexico A 25% customs duty and a 10% tax will be imposed on Mexican aluminum goods produced using raw materials from China, Russia, Belarus and Iran.
Source: Novosti
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What specific strategies is the Mexican government implementing to protect its economy from the potential impacts of US-China trade disputes?
**Interview with Mexican Economic Minister: Navigating US-China Tensions**
**Editor:** Thank you for joining us today. With the ongoing tensions between the US and China, how do you see this impacting Mexico’s economic strategy moving forward?
**Minister:** Thank you for having me. The current situation indeed poses challenges, but it also gives us opportunities. Our primary focus is to mitigate the competitive tensions between Washington and Beijing. We understand that the US remains our main economic partner, and we want to ensure that our relationship continues to thrive.
**Editor:** You mentioned the role of Mexico as a key exporter to the US. Can you elaborate on what this means for your country’s economy amidst these tensions?
**Minister:** Absolutely. Mexico has solidified its position as a vital exporter to the US market. This relationship is not only about exporting goods but also about establishing secure supply chains that can withstand global disruptions. As we navigate these geopolitical shifts, we are committed to enhancing our trade ties while also exploring new opportunities.
**Editor:** Given that the global economy is interconnected, what measures is Mexico taking to shield its economy from the potential fallout of US-China tensions?
**Minister:** We are actively engaging in dialogue with our US counterparts to ensure our trade interests are safeguarded. Additionally, we are diversifying our trade relationships beyond just the US and China, seeking to establish stronger connections with other nations in Latin America and beyond. This diversification strategy is key to securing our economic future.
**Editor:** what message would you like to convey to businesses in Mexico regarding these emerging dynamics?
**Minister:** I would urge Mexican businesses to stay vigilant and adaptable. The international landscape is changing rapidly, and by being proactive, we can harness the shift in trade dynamics to our advantage. Together, we can strengthen our economy and ensure sustained growth despite the challenges ahead.
**Editor:** Thank you for sharing your insights today.
**Minister:** Thank you for having me; it was a pleasure to discuss these important issues.