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 potential shifts in U.S. supply chains could arise from the increasing confrontations with China, and how could this affect Mexico’s manufacturing sector?
**Interview with Economic Analyst on U.S.-China Trade Tensions and Mexico’s Role**
**Interviewer (I):** Thank you for joining us today, Dr. Rivera. We’ve just seen a report suggesting that the U.S. is considering a tougher stance on trade with China, following a recommendation from a congressional panel. What are your thoughts on the potential implications of this for U.S. economic strategy?
**Dr. Rivera (R):** Thank you for having me. The recommendations from the congressional panel indicate a significant shift in U.S. trade policy that reflects growing concerns over the impacts of Chinese economic practices on American interests. This could lead to a more confrontational posture, which will likely strain the already tense U.S.-China relationship even further. Such a stance may be aimed at rectifying the long-standing trade imbalances and ensuring that American industries are better protected.
**I:** The Mexican minister recently mentioned that the U.S.’s economic relationship with China will be a central part of its strategy, and he emphasized Mexico’s position as a leading exporter to the U.S. How do you see Mexico navigating this landscape?
**R:** Mexico stands at a unique crossroads here. As the U.S. looks to recalibrate its trade relationships, Mexico may find opportunities to enhance its export position. However, the challenge will be balancing its own economic interests while navigating the tensions between its two major partners—Washington and Beijing. The minister’s comments suggest a desire to mitigate conflict, indicating that Mexico could act as a stabilizer in North America amidst this growing rivalry.
**I:** With these tensions, do you think there will be a shift in U.S. supply chains? How might that affect Mexico?
**R:** Absolutely, we could see a significant reshuffling of supply chains. Many U.S. companies are seeking to diversify away from China due to tariffs, regulatory uncertainties, and now, potential tighter policies. Mexico is well-positioned to benefit from this shift, especially given its proximity to the U.S. and its existing trade agreements. We could see an uptick in manufacturing and exports, particularly in the automotive and electronics sectors, as companies look for reliable partners closer to home.
**I:** What do you think the minister meant by trying to “mitigate the upcoming conflict”?
**R:** This suggests proactive diplomacy from Mexico. The minister is likely signaling a desire to maintain cooperative trade ties with the U.S. while promoting stability in the face of U.S.-China tensions. Mexico could work strategically to buffer against any economic fallout, potentially offering itself as a mediator or alternative partner in trade discussions, thus ensuring that its economic interests are safeguarded.
**I:** Thank you, Dr. Rivera. This gives us a clearer understanding of the current economic dynamics at play.
**R:** My pleasure. It’s an important time for international trade, and the next steps taken will shape economic relations for years to come.
