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 impact do U.S.-China tensions have on Mexico’s trade strategy?
**Interview with Mexican Economic Minister on U.S.-China Tensions**
**Interviewer:** Thank you for joining us today. You’ve recently highlighted the role of U.S.-China tensions in shaping your economic strategy. Can you elaborate on why this is central to your country’s approach?
**Minister:** Thank you for having me. The ongoing conflict and competition between the U.S. and China will undoubtedly influence global trade dynamics. As Mexico, we recognize that the United States is our primary economic partner, and it is essential for us to navigate these tensions thoughtfully. Our goal is to mitigate the potential fallout for our economy while maximizing our exports to the U.S.
**Interviewer:** You mentioned that Mexico has become one of the main exporters to the United States. What specific sectors are driving this growth?
**Minister:** Mexico’s agricultural and manufacturing sectors are particularly strong in our exports to the U.S. We have a robust supply chain in place, especially in industries like automotive and electronics. Strengthening these sectors will be pivotal as we aim to solidify our position in the U.S. market amidst rising competition from China.
**Interviewer:** Given this competitive landscape, what strategies are you considering to bolster Mexico’s economic relations with the U.S.?
**Minister:** We are focusing on enhancing our trade agreements and ensuring that our industries can adapt to the evolving market demands. We also aim to foster closer collaboration with U.S. businesses to ensure mutual growth. By doing so, we hope to maintain a stable economic environment that can withstand the pressures of international conflict.
**Interviewer:** Lastly, how do you perceive Mexico’s role in the larger context of US-China relations?
**Minister:** Mexico stands at a unique crossroads. While we are closely allied with the U.S., we also maintain our own economic agenda. We need to leverage our geographical advantages and strong trade ties to position ourselves as a reliable partner for the U.S., helping to offset any disruptions caused by U.S.-China tensions. This approach will be essential to our economic resilience moving forward.
**Interviewer:** Thank you, Minister, for your insights. It will be interesting to see how these dynamics evolve.
**Minister:** Thank you for having me. I look forward to continuing this important conversation.
