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 strategies is Mexico implementing to strengthen its economic position amid U.S.-China tensions?
**Interview with Mexican Economic Minister on US-China Relations**
**Interviewer**: Thank you for joining us today. There’s been a lot of discussion regarding the rising tension in economic relations between the United States and China. You mentioned that this will play a central role in the U.S. strategy moving forward. Can you elaborate on your thoughts regarding this situation?
**Mexican Minister**: Certainly, thank you for having me. The tension in economic relations between the U.S. and China is significant not only for those two nations but for global economics as a whole. As a key partner in this landscape, Mexico is acutely aware of our role. We recognize that the U.S. remains our primary economic partner, and we will do our best to navigate the complexities that arise from the U.S.-China competition.
**Interviewer**: It sounds like Mexico is positioning itself strategically. How do you think Mexico can mitigate the fallout from this tension while maintaining strong ties with the U.S.?
**Mexican Minister**: Our approach is to actively engage in diplomacy and strengthen our existing trade agreements. We are one of the main exporters to the U.S., and we aim to highlight our advantages in supply chain stability and proximity. By fostering closer economic ties and being a reliable partner, we can help buffer some of the impacts the U.S. may feel from its ongoing competition with China.
**Interviewer**: That’s interesting. In practical terms, what steps is Mexico taking to enhance its export relationships with the U.S.?
**Mexican Minister**: We are focusing on several key areas: increasing our investments in technology and manufacturing sectors, ensuring quality standards are met for exports, and actively seeking to diversify our product offerings to match U.S. market demands. By doing this, we can strengthen our trade position and lessen the need for the U.S. to rely solely on China.
**Interviewer**: Lastly, do you believe this situation might lead to new opportunities for Mexico?
**Mexican Minister**: Absolutely. Economic tensions often create spaces for alternative partnerships and innovations. As companies reassess their supply chains due to the U.S.-China dynamics, Mexico can step in with our skilled workforce, favorable trade agreements like USMCA, and geographic advantages. This is a pivotal moment for us, and we are ready to seize the opportunities that arise.
**Interviewer**: Thank you for your insights, Minister. It will be interesting to see how these dynamics unfold in the coming months.
**Mexican Minister**: Thank you for having me. I look forward to keeping the dialogue open as we navigate these changes together.
