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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**Interview with Dr. Ana Rodriguez, International Trade Expert**
**Interviewer**: Thank you for joining us today, Dr. Rodriguez. Recently, a Mexican minister highlighted the role of the U.S.-China economic tensions in shaping U.S. strategy. How do you interpret these remarks in the context of global trade dynamics?
**Dr. Rodriguez**: Thank you for having me. The minister’s comments reflect a growing recognition of the interconnectedness of global trade and how shifts in major economic powers can have far-reaching implications. Specifically, the tension between the U.S. and China is indeed becoming a central element in U.S. economic strategy. The U.S. is trying to recalibrate its relationships globally to ensure that its interests are safeguarded amid increasing competition with China.
**Interviewer**: Indeed, what are some ways you believe Mexico can maintain its position as a key exporter to the U.S. while navigating these tensions?
**Dr. Rodriguez**: Mexico stands to benefit from its proximity to the U.S. and its established trade agreements. By positioning itself as a stable and reliable partner, Mexico can attract investment and expand its export capabilities. Additionally, as U.S. companies seek to diversify their supply chains away from China to mitigate risks, Mexico can serve as an alternative hub for manufacturing and assembly.
**Interviewer**: That’s an important point. You mentioned supply chains — how do you see the current climate affecting the logistics and supply chain strategies of U.S. companies?
**Dr. Rodriguez**: Many U.S. companies are currently reassessing their supply chains due to the U.S.-China relationship. The trend is towards nearshoring, which means relocating production closer to the U.S., often in Mexico. This reduces transportation costs and lead times, and also improves resilience to global disruptions. However, companies will need to navigate regulatory environments and ensure the stability of the regions they are moving into.
**Interviewer**: Recent analyses also suggest that while tensions are high, aspects of global trade like green and digital trade remain robust. What implications does this have for Mexico?
**Dr. Rodriguez**: That’s a crucial observation. Mexico has a unique opportunity to tap into the green economy. As the U.S. shifts focus towards renewable energy and sustainable practices, Mexico can align its exports and investments in sectors like clean technology and sustainable agriculture. This not only helps mitigate the impacts of economic tensions but also positions Mexico as a leader in the next wave of economic development.
**Interviewer**: what advice do you have for policymakers in Mexico as they navigate these complexities?
**Dr. Rodriguez**: Policymakers should focus on strengthening domestic industries and enhancing the country’s competitive edge. This includes investing in technology, improving infrastructure, and fostering a business environment that attracts foreign investment. Additionally, maintaining open communication channels with both the U.S. and China will be vital to mitigate potential conflicts and capitalize on emerging opportunities.
**Interviewer**: Thank you, Dr. Rodriguez, for your insightful analysis on this complex issue. Your expertise sheds light on how Mexico can strategically navigate its economic relationship with both the U.S. and China.
**Dr. Rodriguez**: Thank you for having me. It’s vital that we remain vigilant and proactive in these changing economic landscapes.
